News Release
Selwyn Announces Closing of the Second Tranche of its
Special Warrant Offering
Vancouver,
BC, May
31, 2011 � Selwyn Resources
Ltd. (�Selwyn�) (TSX.V: SWN) today announced that it has closed the second
tranche of its Special Warrant offering through Paradigm Capital Inc. as lead
agent on behalf of a syndicate including Canaccord Genuity Corp., raising CAD$4,682,000.00 from the sale of
18,728,000 Special Warrants. It is expected that a third tranche of the
Offering will be completed by June 3, 2011.
Each
Special Warrant will be convertible for no additional consideration into one
common share (�Common Shares�) of Selwyn and one-half of one Common Share
purchase warrant (�Warrants�) of Selwyn upon the earlier to occur of Selwyn
clearing a prospectus (the �Prospectus�) in applicable Canadian jurisdictions,
and the date that is four months after the closing date for the Offering. Each
whole Warrant will entitle the holder thereof to purchase one Common Share at
$0.40 for a period of 24 months after the closing date of the Offering. If the
Prospectus has not been cleared by July 8, 2011, each Special Warrant, other than
those purchased by residents of Quebec, will be convertible into 1.1 Common
Shares and 0.55 of a Warrant.
The
proceeds will be used for the purchase consideration payable by Selwyn in
connection with the acquisition of ScoZinc Limited
from Acadian Mining Corporation (See February 8, 2011 News Release), which
acquisition is on track to close on or about May 31, 2011..
About
Selwyn Resources Ltd.
Selwyn�s
main focus remains the exploration and development of its properties that make
up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn
and Chihong Canada Mining Ltd. The acquisition of the
Scotia Mine will provide Selwyn with a new opportunity for growing the company,
expanding its management team, and providing cash flow to fund growth as it
advances the Selwyn Project.