Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

September 30, 2009 13:45 ET

Selwyn Resources Announces $6.132 Million Closing of First Tranche of Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 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 on $6.132 million in a first tranche of the previously-announced (September 8 and September 16, 2009) non-brokered $7.092 million Share Offering (the "Offering") at $0.12 per share.

In the first tranche of the Offering, 51.1 million common shares were issued to three placees for cash consideration of $6,132,000. The first placee is a wholly-owned subsidiary of Korea Zinc Company Ltd., Pan-Pacific Metal Mining Corporation ("Pan-Pacific"), an insider of the Company. Pan-Pacific subscribed for 29.4 million shares increasing its share position to 20.3% of the issued common shares of the Company. At the completion of the second tranche of the Offering (as described below) Pan-Pacific will hold 19.8% of the issued common shares of the Company. The second placee is Resource Capital Fund IV LP ("RCF"), an insider of the Company that subscribed for 20.7 million Shares, increasing its share position in Selwyn to 20.3%. At the completion of the second tranche of the Offering (as described below) RCF will hold 19.8% of the issued common shares of the Company. The remainder of the first tranche, 1,000,000 shares for proceeds of $120,000, was placed with a European fund. The percentage equity holdings mentioned above are made on an undiluted basis.

The second tranche of the Offering, 8,000,000 shares for proceeds of $960,000, is subscribed by Best Tone Holdings Ltd. ("Best Tone"), a unit of China Mining Resources Group Ltd. ("China Mining"). This tranche is expected to close in October, 2009 after TSX Venture Exchange approval of Personal Information Forms that are to be filed by certain of China Mining Resources Group Ltd. insiders. China Mining is an insider of the Company by virtue of its current, pre-Offering, 14.9% indirect equity interest in the Company. After closing the second tranche, China Mining through Best Tone will hold 14.6% of the issued shares of Selwyn.

The securities sold in the first tranche have a four month hold period expiring January 31, 2010. The securities were sold pursuant to applicable securities law exemptions.

Harlan Meade, CEO, commented: "Selwyn appreciates the continued support of its major shareholders as we continue advancement of exploration and engineering activities at the Selwyn Project."

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