Not for distribution to U.S. newswire services or dissemination in
the United States
News Release
Selwyn Resources Closes $562,500 Unit Financing
Vancouver, BC, June 16, 2010 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn” or the “Company”) announces that it
has closed the previously-announced (June 4, 2010) non-brokered $562,500 Unit Offering
(the “Offering”). The Offering consisted of 3,750,000 units (the
“Units”). Each Unit consisted of one common share and one-half of one
common share purchase warrant (each full warrant being a “Warrant”) and
was priced at $0.15. Each Warrant has an exercise price of $0.25 per
share and an expiry date of December 31, 2014. The sole subscriber in the
Offering was Resource Capital Fund IV LP (“RCF”). RCF’s post closing
direct and indirect holdings in the Company, assuming exercise of the
Warrants issued under the Offering, are 65,945,110 shares of the Company,
representing 21.12% of the post-closing outstanding shares of the
Company. The securities sold have a four month and one day hold period
which expires October 17, 2010. The securities were sold pursuant to
applicable securities law exemptions.
As a condition of the Offering, on closing, RCF
relinquished to the Company its warrant to purchase 3,750,000 common
shares of the Company. These warrants, which will be cancelled by the
Company, had an exercise price of $0.15 per share and would have expired
on June 3, 2011.
The proceeds of the financing total $562,500. The
funds will be used for 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).
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 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.
-30-
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.
|