Selwyn Resources Ltd.

Selwyn Resources Ltd.

June 03, 2009 13:15 ET

Selwyn Announces $2.25 Million Closing of First Tranche of Unit Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2009) -


Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn" or the "Company") announces that it has closed the first tranche ($2,250,000) 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, totalling $250,000, was closed earlier, on May 14, 2009. 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 June 3, 2011.

In this first tranche, 22.5 million common shares and 11.25 million common share purchase warrants were issued to two placees for cash consideration of $2,250,000. The first placee is Resource Capital Fund IV LP ("RCF"), an insider of the Company that subscribed for 7.5 million Units to maintain its share position in Selwyn. RCF now holds 17.1% of the issued common shares of the Company. The second placee is Pan-Pacific Metal Mining Corporation ("Pan-Pacific"), a wholly owned subsidiary of Korea Zinc Company Ltd., a major Korean zinc smelter. Pan-Pacific subscribed for 30 million Units, 15 million of which were acquired on the first tranche and 15 million are to be acquired on the second tranche. The second tranche of the Unit offering is expected to close by the middle of July, 2009 after TSX Venture Exchange approval of Personal Information Forms that are to be filed by certain of Pan-Pacific's insiders. Pan-Pacific now holds 9.6% of the issued common shares of the Company (including warrants acquired on the first tranche) and will hold 17.5% of the issued common shares of the Company (including warrants acquired on the first and second tranches) following closing of the second tranche. The securities sold have a four month hold period expiring October 4, 2009. The securities were sold pursuant to applicable securities law exemptions in the Province of British Columbia and the United States.

Harlan Meade, CEO, commented: "Selwyn welcomes Korea Zinc as a new major shareholder of the Company, and appreciates the continued support from RCF, as we position the Selwyn Project for advancement as metals prices recover."

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
    Selwyn Resources Ltd.
    Jasmin TamDoo
    Manager of Investor Communications
    (604) 801-7240 or Toll-free: 1-888-989-9188
    (604) 689-8355 (FAX)