Selwyn Resources Ltd.
TSX VENTURE : SWN

Selwyn Resources Ltd.

August 14, 2007 17:30 ET

Selwyn Resources Announces Closing of $10.7 Million Unit Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Selwyn Resources Ltd. (TSX VENTURE:SWN) is pleased to announce the closing of the previously announced $10 million private placement financing (see July 17 and 30, 2007 News Releases). A total of 16,542,100 units were issued at $0.65 per unit for total proceeds of $10,752,365 (the "Offering"). Each unit was comprised of one common share of the Company and one half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one common share at $0.85 per share for a period of 24 months following the closing date, subject to acceleration. The securities are subject to a four-month and one day hold period under securities legislation and are not freely tradable until December 15, 2007.

If at any time from 12 months after the closing date, the volume-weighted average trading price of the common shares of the Company on the TSX Venture Exchange is greater than $1.30 for any 20 consecutive trading days, the Company may accelerate the expiry of the Warrants by providing written notice to holders of the Warrants and issuing a press release to the effect that the Warrants will expire 30 days following the date of such notice.

The agents in connection with the Offering were Paradigm Capital Inc., Haywood Securities Inc., Blackmont Capital Inc. and Canaccord Capital Corporation. On the closing date, the agents received from the Company a cash commission equal to 6% of the gross proceeds of the Offering and were granted Compensation Options equal to 6% of the aggregate number of units issued in the Offering. The Compensation Options entitle the agents, for a period of 24 months from the closing date, to acquire up to 992,526 common shares at an exercise price of $0.65 per share.

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 press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. Additional drilling is required to confirm the potential of the new discovery areas and expansions of the current resource areas and the extension of the higher grade deep mineralization to depth. Furthermore, there is no assurance that the resources being defined can be developed as an economically attractive mine, and there are many uncertainties associated with permitting and other factors that could delay such development.

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