Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

July 06, 2009 13:15 ET

Selwyn Announces $1.5 Million Closing of Second Tranche of Unit Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn" or the "Company") announces that it has closed the second tranche ($1,500,000) of the $3,750,000 Unit portion of the previously-announced (May 8, 2009) non-brokered $4 million Unit and Flow-through Offering. The Flow-through portion of the financing ($250,000), and the first tranche of the Unit portion ($2.25 million), were closed earlier on May 14, 2009 and June 3, 2009, respectively. The Units are priced at $0.10 each and are comprised of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.15 for a period of two years expiring July 6, 2011.

In this second tranche, 15 million common shares and 7.5 million common share purchase warrants were issued to a single placee for cash consideration of $1,500,000. The single placee for this second tranche is Pan-Pacific Metal Mining Corporation ("Pan-Pacific"), a wholly-owned subsidiary of Korea Zinc Company Ltd., one of the largest zinc metal smelters in the world.

Together with the shares purchased at the first closing on June 3, 2009, Pan-Pacific now holds 30,000,000 shares and 15,000,000 warrants. If each of the warrants were exercised as at today's date, and no others, Pan-Pacific would hold approximately 17.55% of the issued and outstanding shares of the Company. The securities sold have a four month hold period expiring November 7, 2009. The acquisition of Units by Pan-Pacific was made pursuant to applicable securities law exemptions in the Province of British Columbia.

Selwyn's focus is the exploration and development of its Selwyn Project in eastern Yukon and Northwest Territories. The Selwyn Project represents one of the largest undeveloped resources of zinc and lead in the world and is unique in its location in the politically-attractive and stable jurisdiction of the Yukon. It is therefore both a unique opportunity and a strategic asset providing a long term secure supply of zinc and lead to the Pacific Margin.

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 or shareholder 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.

Neither 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.

Contact Information

  • Selwyn Resources Ltd.
    Dr. Harlan Meade
    President and CEO
    (604) 801-7240 or Toll-free: 1-888-989-9188
    or
    Selwyn Resources Ltd.
    Jasmin TamDoo
    Manager of Investor Communications
    (604) 801-7240 or Toll-free: 1-888-989-9188
    (604) 689-8355 (FAX)
    info@selwynresources.com
    www.selwynresources.com