VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 16, 2012) - Further to its April 10, 2012 news release, Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn" or the "Company") closed its $10 million principal amount ("Principal Amount") non-revolving secured debt facility (the "Debt Facility") for Selwyn's wholly owned subsidiary, ScoZinc Limited ("ScoZinc") with Waterton Global Value, L.P. (the "Lender"). The proceeds under the Debt Facility will be used by ScoZinc and Selwyn for general corporate purposes, including activities at the ScoZinc Mine in Nova Scotia.
In connection with the closing, the Company has drawn down $2 million as required under the Debt Facility. The Debt Facility allows ScoZinc to draw down a total of $3 million of the Principal Amount prior to receiving the Industrial Authorization for the Southwest Expansion of the Main Pit of the ScoZinc Mine from the Nova Scotia provincial government. Thereafter, the Company can draw down the remaining $7 million for a period of 20 months.
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 Mining Canada Mining Ltd. The Selwyn Project hosts large tonnages of zinc-lead mineralization which have the potential for large-scale production, and could provide a secure supply of zinc and lead to meet the future needs of these markets in Asia and beyond. The ScoZinc Mine owned by Selwyn's wholly owned subsidiary, ScoZinc Limited, provides Selwyn with a second opportunity for growth and production revenues in the near term. The re-development of the ScoZinc Mine will enhance the company's capacity to develop the Selwyn Project.
This press release contains forward-looking statements concerning the Debt Facility and the advancement of the Selwyn Project and the ScoZinc Mine. These forward-looking statements, which include, among other things, the expected date of receipt of the Industrial Authorization from the Nova Scotia provincial government, are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of market conditions for securities, commodities prices, the results of exploration activities and engineering studies, the availability of capital on terms acceptable to Selwyn and ScoZinc, regulatory approval, and other risk factors beyond Selwyn's control. As a result, there is no assurance that the Selwyn Project or the ScoZinc Mine will be advanced to production or that timelines for development of the Selwyn Project and the ScoZinc Mine will be achieved.
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.