Selwyn Closes US$5 Million Credit Facility
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/12/10 -- Selwyn Resources Ltd. (TSX VENTURE: SWN) ('Selwyn' or 'the Company') announces that it has closed and made a draw of US$2 million, under a US$5 million revolving credit facility ('the Facility') with Resource Capital Fund IV LP ('RCF'). The terms of this facility, and TSX-V approval, were announced on July 2, 2010. RCF is a major shareholder of the Company holding 20.6% equity position prior to completion of this transaction.
The funds drawn will be used for approved 2010 Selwyn Project expenditures and working capital. These expenditures are being undertaken in advance of the expected closing of the CDN$100,000,000 joint venture investment by Yunnan Chihong Zinc and Germanium Co. Ltd. ('Selwyn-Chihong Transaction') (see June 2, 2010 news release). Upon financial close of the Selwyn-Chihong Transaction, expected in mid-August 2010, the CDN$100,000,000 will be deposited into the bank account of the new joint venture company, 'Selwyn Chihong Mining Ltd.', which will be 50% owned by the Company. Selwyn intends to repay the amount drawn under the Facility upon receipt of the Selwyn Project expenditures made from July 1, 2009, reimbursed to Selwyn under the terms of the Selwyn-Chihong Joint Venture Agreement.
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 credit facility financing, the development of the Selwyn Project and the Chihong investment. 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 complete the Chihong transaction, 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. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. All dollars in this release are in United States funds unless otherwise stated.
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.
Contacts:
Selwyn Resources Ltd.
Dr. Harlan Meade, President and CEO
(604) 801-7240 or Toll-Free: 1-888-989-9188
International Toll-Free: 1-800-7581-2133
(604) 689-8355 (FAX)
info@selwynresources.com
www.selwynresources.com