Not for Distribution to U.S. Newswire Services or Dissemination in
the United States
News Release
Selwyn Announces up to $3 Million
Non-brokered Flow-through and Unit Financing
Vancouver, BC, June 16, 2010 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn”) announces an offering of up to
12,500,000 Flow-through common shares at $0.20 per share, and up to
2,500,000 Units at $0.20 per Unit (“the Offering”) in a non-brokered
private placement for gross proceeds of up to $3 million. The Unit will
consist of one common share and one-half common share purchase warrant.
Each full warrant will entitle the holder to purchase one common share at
a price of $0.30 per share for two years from closing of the transaction.
The securities will be sold pursuant to the
applicable securities law exemptions in the Provinces of British
Columbia, Ontario and such other provinces as the Company may determine.
The Offering is subject to regulatory acceptance and final documentation,
and is scheduled to close on or before June 30, 2010. The securities sold
will be subject to a four month plus one day hold period from the date of
closing.
The funds will be used for qualifying Canadian
Exploration Expenses on the Selwyn Project and for general corporate
purposes. These expenditures are being incurred in advance of the receipt
of funds from the expected Closing of the CDN$100,000,000 joint venture
investment by Yunnan Chihong Zinc and Germanium Co. Ltd. (“Chihong”) (see
June 2, 2010 news release).
The Selwyn Project represents one of the largest
undeveloped resources of zinc and lead in the World and is located in the
politically attractive jurisdiction of the Yukon. It is therefore both a
unique opportunity and a strategic asset with the potential to provide a
long term, secure supply of zinc and lead to the Pacific Margin markets.
This news release contains
forward-looking statements concerning the Offering, the transaction with
Chihong and development of 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
complete the proposed 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.
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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 International Toll-free: 800-800-7581-2133
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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