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News Release
Selwyn Announces Up to $4 Million Non-brokered Unit and
Flow-through Financing
Vancouver,
BC, May 8, 2009 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn” or the “Company”) announces an
offering of up to $250,000 in Flow-through common shares at $0.10 per
share and up to $3,750,000 in Units at $0.10 per Unit in a non-brokered
private placement (“the Offering”). Each Unit consists of one common
share and one-half of a common share purchase warrant. Each whole warrant
will entitle the holder to purchase one common share at a price of $0.15
for a period of two years from the closing of the transaction. A 3%
finder’s fee will be paid in respect of some of the Flow-through shares
sold. The securities sold will have a four month hold period extending
from the closing date of the transaction. The securities will be sold
pursuant to applicable securities law exemptions. The Offering is subject
to completion of final documentation and receipt of required regulatory
approvals.
The Offering is
expected to close in separate closings, with the Flow-through portion
closing on or about May 13, 2009. The Unit portion of the financing,
which is expected to close on or about May 29, 2009, of which $3,000,000
is being sold to a large Asian smelter company and the balance to a
current shareholder that is exercising its anti-dilution rights in
respect of the financing. The proceeds of the Flow-through portion of the
financing will be used for qualifying Canadian exploration expenses on
the Selwyn Project, located in the eastern Yukon, and the balance of the
proceeds will be used for general working capital and the continued
advancement of the Selwyn Project.
The process of
finding a strategic partner to invest in the Selwyn Project is now
regaining momentum after the financial market troubles of late 2008. Importantly,
Asian smelter groups and others are now recognizing an emerging future
shortfall in zinc supply. The strategic importance of the large zinc and
lead mineral resources in the geopolitically favourable environment of
the Yukon is a key consideration for potential strategic partners. While
the Company continues its search for a strategic partner to fund
continuing exploration and development work, project activities are
mainly ground exploration, engineering and economic tradeoff studies,
internal feasibility evaluations, and negotiation of a socioeconomic
agreement with local First Nations communities.
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 and the 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 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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OF 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: 1-888-989-7240
Facsimile: (604) 689-8355
info@selwynresources.com
www.selwynresources.com
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