Selwyn Resources Announces Intention to make a
Normal Course Issuer Bid
Vancouver, BC, January 27, 2011 � The Board of Directors of Selwyn
Resources Ltd. (SWN.TSX-V) (�Selwyn�) announces today that the TSX
Venture Exchange (the �Exchange�) has approved notice of Selwyn�s
intention to make a normal course issuer bid (the �Bid�) in respect of
its common shares (the �Shares�).
The
Bid will be carried out by Selwyn Chihong
Mining Ltd. (�SCM�), which is a company owned 50% by each of Selwyn and Chihong Canada Mining Ltd. (�Chihong�).
SCM is the operator of the joint venture (the �Joint Venture�) between
Selwyn and Chihong that was formed on August
18, 2010 to carry out exploration and development activities at the
Selwyn Project located in the eastern Yukon and Northwest Territories. Chihong put up Canadian $100,000,000.00 (the �Chihong Earn-In Funds�) for the purpose of earning a
50% interest in the Joint Venture.
The
purpose of the Bid is to enable SCM to establish an incentive share
option plan (the �Plan�) for its employees under which Shares may be
purchased by the employees pursuant to options (�Options�) granted under
the Plan. SCM will purchase the Shares through the facilities of the
Exchange at the prevailing market price for the Shares. Options will be
granted to employees of SCM who are not seconded employees of Selwyn and
the Shares will be sold to the employees upon exercise of their Options.
The exercise price under an Option will be established at the closing
price for the Shares on the Exchange on the day prior to the day of grant
of the Option.
Under
the Bid, SCM intends to spend up to Canadian $1,000,000 to acquire
Shares. These funds will come from the Chihong
Earn-In Funds. The actual number of Shares that may be purchased and the
timing of any such purchases will be determined by SCM, provided that SCM
will not acquire more than 16,046,927 (which is 5% of the issued and
outstanding Shares) over a 12-month period commencing on February 1, 2011
or acquire an aggregate of more than 2% of the total issued and
outstanding Shares over any 30-day period. Canaccord
Genuity Corp. will be conducting the Bid on
behalf of SCM. Selwyn has not made a normal course issuer bid in the last
12 months and therefore has not acquired any Shares pursuant to a normal
course issuer bid during this time.
The
powers of the board of directors� of SCM were transferred through its
incorporation documents to the Management Committee of the Joint Venture
and accordingly, the Management Committee will administer the Plan. The
Management Committee has four members, two representing Selwyn and two
representing Chihong. The Shares which are
purchased will be owned and held by SCM as an asset of the Joint Venture
until such time as they are sold upon the exercise of Options. Under
applicable corporate law, SCM may not vote the Shares held by it at
meetings of the shareholders of Selwyn. SCM will hold the proceeds from
the exercise of Options and use the proceeds for expenditures on the
Selwyn Project and for administrative costs of SCM. The establishment of
the Plan and the sale of Shares thereunder will
be carried out in accordance with applicable securities laws, policies,
rules, regulations and exemptions.
Selwyn�s
focus is the exploration and development of the Selwyn Project in the
eastern Yukon and Northwest Territories with its joint venture partner Chihong Canada Mining Ltd. The Selwyn Project
represents one of the largest undeveloped resources of zinc and lead in
the world and is unique in that it is mostly located in the
politically-attractive and stable jurisdiction of the Yukon Territory. 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 Bid and
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 obtain necessary regulatory or
shareholder approvals, exploration results 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.
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For more information contact:
Dr. Harlan Meade, President and CEO
Catalin Chiloflischi,
Manager of Investor Communications
Telephone: +1 (604) 801-7240
Toll-free: +1 (888) 989-9188
Facsimile: +1 (604) 689-8355
Email: info@selwynresources.com
Website: www.selwynresources.com
Neither 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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