News Release
Selwyn Closes US$5 Million Credit
Facility
Vancouver, BC, August 12, 2010 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn” or “the Company”) announces that it
has closed and made a draw of US$2 million, under a US$5 million
revolving credit facility (“the Facility”) with Resource Capital Fund IV
LP (“RCF”). The terms of this facility, and TSX-V approval, were
announced on July 2, 2010. RCF is a major shareholder of the Company
holding 20.6% equity position prior to completion of this transaction.
The funds drawn will be used for approved 2010
Selwyn Project expenditures and working capital. These expenditures are
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. (“Selwyn-Chihong Transaction”) (see June 2, 2010 news release). Upon financial close of
the Selwyn-Chihong Transaction, expected in mid-August 2010, the
CDN$100,000,000 will be deposited into the bank account of the new joint
venture company, “Selwyn Chihong Mining Ltd.,” which will be 50% owned by
the Company. Selwyn intends to repay the amount drawn under the Facility
upon receipt of the Selwyn Project expenditures made from July 1, 2009,
reimbursed to Selwyn under the terms of the Selwyn-Chihong Joint Venture
Agreement.’
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 credit facility financing, the development
of the Selwyn Project and the Chihong investment. 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 complete the Chihong
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. This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as amended
(the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available. All
dollars in this release are in United States funds unless otherwise
stated.
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For more information contact:
Dr. Harlan Meade, President and CEO
Telephone: (604) 801-7240
Toll-free: 1-888-989-9188
International toll-free: 1-800-7581-2133
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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