Not for distribution to U.S. newswire services or dissemination in the United States
News Release
Selwyn Resources Announces $650,000 Closing of Second Tranche of Financing
Vancouver, BC, July 28, 2010 � Selwyn Resources Ltd. (SWN.TSX-V) (�Selwyn�) announces that it has closed on a second tranche of the previously-announced (see June 16, 2010 News Release) non-brokered offering of Flow-through shares and Units (the �Offering�). Pursuant to the Offering, in this second tranche, the Company issued 1,600,000 Flow-through shares for gross proceeds of $320,000. Each Flow-through share was priced at $0.20 per share. The securities have a four month hold period that expires on November 24, 2010. In addition, Resource Capital Fund IV LP (�RCF�) exercised its right to participate in the financing and maintain its 20.6% equity interest in Selwyn. RCF acquired 1,650,000 common shares also at $0.20 per share for proceeds of $330,000. The shares acquired by RCF also are subject to the hold period that expires on November 24, 2010.
The Securities were sold pursuant to applicable securities law exemptions in the Provinces of Ontario, British Columbia and such other applicable provinces of Canada and applicable jurisdictions outside of Canada.
The funds will be used for qualifying Canadian Exploration Expenses, and permitting and engineering programs 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. (see June 2, 2010 news release) in the Selwyn Project.
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 proposed 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 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 Canadian funds.
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For more information contact: Dr. Harlan Meade, President and CEO Jasmin TamDoo, Manager of Investor Communications Telephone: (604) 801-7240 Toll-free: 1-888-989-9188 Facsimile: (604) 689-8355 info@selwynresources.com www.selwynresources.com
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.
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