|
Not for Distribution to U.S. Newswire Services or Dissemination in
the United States
News Release
Selwyn Announces Up to
$1,000,000 Non-brokered Flow-through Financing
Vancouver, BC, December 23, 2009 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn”) announces a non-brokered offering
of up to $1,000,000 in Flow-Through common shares (the “Offering”) with
one placee. Each share will be priced at $0.275
per share. A finder’s fee of 6% of the aggregate amount raised will be
paid in respect of the securities being sold. The securities sold will
have a four month hold period extending from the date of closing. The
securities will be sold pursuant to applicable securities law exemptions.
The Offering is subject to completion of final documentation and receipt
of required regulatory approvals and expected to close before December
31, 2009.
The proceeds of
the financing will be used for qualifying Canadian exploration expense on
the Selwyn Project.
On December 14,
2009, Selwyn announced a $100 million investment by Yunnan Chihong Zinc and Germanium Co. Ltd. (“Chihong”) to acquire a 50% joint venture interest.
The joint venture transaction with Yunnan Chihong
is expected to close in May 2010, following receipt of regulatory
approvals. In the interim, Selwyn will continue to advance the Selwyn
Project towards bankable feasibility and the securing of the licences
required for mine development.
Both of Resource
Capital Fund and Pan-Pacific Metal Mining Corporation, pursuant to their
respective shareholder’s agreements, have the right to participate in the
financing as to such number of shares that allows them to maintain their
current shareholding in Selwyn of 19.77% each. At this time Selwyn has
not received instruction from them as to whether they wish to
participate. Participation in the financing would increase the number of
shares to be issued.
Selwyn’s focus
is the exploration of its properties that make up the Selwyn Project in
the Yukon, which hosts large tonnages of zinc-lead mineralization. The
known deposits have the potential for large scale production of zinc and
lead, at a time when major new mines are needed to ensure adequate future
zinc mine supply.
This news
release contains forward-looking statements concerning the proposed
financing and the development of the Selwyn Project. These statements are
based on assumptions and judgments of management regarding future events
or results that may prove to be inaccurate as a result of failure to
complete the proposed financing, failure to obtain necessary regulatory
approvals, exploration and other risk factors beyond Selwyn’s control. There
can be no assurance that such forward-looking statements will prove to be
accurate as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements contained in this news
release. This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available. All dollars in this
release are in Canadian funds.
-30-
For more information
contact:
Dr. Harlan Meade, President and CEO
Jasmin TamDoo,
Manager of Investor Communications
Telephone: (604) 801-7240
Toll-free: 1-888-989-9188
Facsimile: (604) 689-8355
info@selwynresources.com
www.selwynresources.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
|