Selwyn Resources Ltd.

Selwyn Resources Ltd.

September 08, 2009 09:28 ET

Selwyn Resources Announces Up to $6 Million Non-brokered Share Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2009) -


Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn" or the "Company") announces an offering of up to 50,000,000 common shares at $0.12 per share to raise up to $6,000,000 in a non-brokered private placement ("the Offering"). The securities sold will have a four month hold period extending from the closing date of the transaction. 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. The Offering is expected to close before September 30, 2009.

The proceeds of the financing will be used for funding general working capital and to fund drilling, metallurgical studies, engineering studies and environmental activities at the Selwyn Project. These activities will advance the Selwyn Project while the Company continues to have discussions with various potential strategic partners for their participation in the Selwyn Project.

The 2009 exploration plan will be expanded to undertake detailed engineering on power alternatives and a concentrate pipeline to provide key information for optimization of a pre-feasibility study on the Selwyn Project which the Company is working on. This study evaluates an 8,000 tonne per day underground mine-mill complex focused on mining high-grade mineralization in the XY Central and Don zones. Similarly, detailed metallurgical testwork will be undertaken on high-grade mineralization to determine detailed process design and to optimize metallurgical performance.

Selwyn also plans to resume diamond drilling to test the extension of the XY West zone discovered in the fall of 2008 (see December 9, 2008 news release) and a new zone intersected in the geotechnical drilling of the proposed portal site for the initial underground development to access the XY Central zone, which will be used for additional resource expansion drilling. Assays are pending for this new intercept of good grade mineralization that was intersected in the geotechnical drill hole. This new zone lies west of a major fault that was previously thought to define the western limit of the XY zone and therefore opens up a new target area with potential for significant tonnage of high-grade resources. The Selwyn Project, located in the eastern Yukon, 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 that could provide a long term secure supply of zinc and lead to the Pacific Margin.

This news release contains forward-looking statements concerning the proposed financing, development of the Selwyn Project and success of proposed additional exploration drilling. 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.

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)