Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

May 08, 2008 20:18 ET

Selwyn Resources Announces $5,500,000 Unit and Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) -

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 a non-brokered offering (the "Offering") of up to $4 million of Units and $1.5 million of Flow-through shares (the "Securities"). The Offering is scheduled to close on or before May 20, 2008. Each unit is priced at $0.21 per unit and consists of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.27 for a period of two years from Closing of the Offering. Each Flow-through share is priced at $0.25 per share.

The Securities will be sold pursuant to applicable securities law exemptions in the Provinces of Ontario, British Columbia and such other provinces of Canada as the Company may determine and in such jurisdictions outside of Canada, as the Company may determine. Notwithstanding the foregoing, it is not contemplated that an offering memorandum will be prepared for the Offering. The Securities will be subject to the mandatory four month plus one day hold period from the date of Closing. The Offering is subject to receipt of regulatory acceptance and approval of the Board of Selwyn Resources Ltd.

The proceeds of the financing will be used for continued advancement of the environmental assessment, permitting, First Nations consultation, engineering and exploration on the Selwyn Project, and for general working capital. The Company intends to undertake a modest drilling program to follow-up on high grade mineralization found in the 2007 drilling program that defined substantial resources of high grade mineralization (see January 29, 2008 news release).

The funds will allow the Company to continue advancing the Selwyn Project as it continues its discussions with potential strategic partners. Of increasing importance for potential strategic partners is the importance of the Selwyn Project as one of the few large undeveloped resources of zinc and lead in the world, located in a politically-stable environment such as 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.

Selwyn's focus is the exploration of its properties that make up the Selwyn Project in the Yukon, which hosts large tonnages of zinc-lead mineralization. The known deposits have the potential for the large scale production of zinc and lead, at a time when major new mines are needed to ensure adequate future zinc mine supply.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information

  • Selwyn Resources Ltd.
    Dr. Harlan Meade, President and CEO
    (604) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 1-800-8682-5474
    or
    Selwyn Resources Ltd.
    Jasmin TamDoo, Manager of Investor Communications
    (604) 682-5474 or Toll Free: 1-877-682-5474
    International Toll Free: 1-800-8682-5474
    (604) 682-5404 (FAX)
    Email: info@selwynresources.com
    Website: www.selwynresources.com