VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 2, 2011) - Selwyn Resources Ltd. ("Selwyn") (News - Market indicators) -
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Selwyn announces that Transaminvest ("Transamine") participated in Selwyn's recent special warrant equity financing of CAD$11,794,500.00 (see May 27 and 31, 2011 News Releases) investing CAD$7,000,000.00. Transamine has acquired 28,000,000 units in the recent special warrant financing, convertible into 28,000,000 common shares of Selwyn. Each unit also includes a 1/2 warrant with one whole warrant entitling the holder to purchase one common share at a price of $0.40 for a period of two years from the May 27, 2011 closing of the financing.
Dr. Harlan Meade, Selwyn's President and CEO, said: "We welcome Transamine as Selwyn's fourth largest shareholder, owning approximately 7% of Selwyn's total issued capital. We look forward to working with Transamine and benefiting from their in-depth knowledge, intelligence and expertise in the base metals sector as we seek buyers for concentrates from the Scotia Mine. Transamine is one of the oldest independent and privately held commodity trading companies specializing in non-ferrous raw materials."
Mr. Helge Schmidt, President of Transamine, said: "We are very excited to become a shareholder of the giant Selwyn Project, and we look forward to a quick restart of production at the recently acquired ScoZinc operations in Nova Scotia. We are confident in the Company's ability to develop Selwyn Resources Ltd. into an important mid tier zinc and lead producer over the near term."
Transamine, founded in 1953, has proven its adaptability, reliability and flexibility in increasingly complex global markets. The group pursues trading activities, provides services in marketing, raw material sourcing, logistic and administrative assistance as well as financial support to existing mines and junior mining companies through direct investments for start-ups or expansions which fit Transamine's risk profile and customer needs.
Selwyn's primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The acquisition of the Scotia mine will provide Selwyn with a new opportunity for growth, while expanding its management team and providing cash flow to fund growth and the advancement of the Selwyn Project.
This press release contains forward-looking statements concerning the re-start of production at the Scotia Mine. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. There is no assurance that such information will prove to be accurate, as future events could differ materially from those anticipated in such information and accordingly, there is no assurance that the raising of debt to fund the re-start of the Scotia Mine, the increase of resources for the Scotia Mine and the resulting increase in mine life, the obtaining of a satisfactory economic re-evaluation for the Scotia Mine based on current mineral resources. Similarly there is no certainty that Selwyn and its partner Chihong Canada Mining Ltd, will be successful in advancing the Selwyn Project to production as an important new zinc-lead mine. Readers should not place undue reliance on forward-looking statements.
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.