News Release
Selwyn Resources Ltd. Enters into Cooperation Agreement
with Tulita
District Land Corporations
Vancouver, BC, May 6, 2010 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn”) is pleased to announce that it has
reached an agreement with Tulita Land
Corporation, Fort Norman Metis Land Corporation
and the Norman Wells Land Corporation for their participation in the
exploration and development of the Selwyn Project and Selwyn’s
exploration lands in the Tulita District in the
Northwest Territories.
Tulita Land
Corporation, Norman Wells Land Corporation and Fort Norman Metis Land Corporation represent approximately 1,200
beneficiaries under the Sahtu Dene and Metis
Comprehensive Land Claim Agreement. The traditional territory of the
three Land Corporations, commonly referred to as the Tulita
District, includes the area of Selwyn Resources’ mineral claims and
leases within the Northwest Territories.
Dr. Harlan
Meade, President and CEO, states that, “Selwyn Resources welcomes the
participation of the Tulita Land Corporation,
Fort Norman Metis Land Corporation, and the
Norman Wells Land Corporation in the exploration and development of the
Selwyn Project and we are confident that Selwyn Resources, the three Land
Corporations and the beneficiaries will enjoy mutual benefits from their
joint co-operation and support.” Rocky Norwegian Sr., the President of
the Tulita District Land Corporation Ltd. said,
“We believe that the Cooperation Agreement will bring significant
benefits to the three Land Corporations and the beneficiaries and their
businesses, including employment, training and business opportunities. We
look forward to working with Selwyn Resources and developing a long-term
relationship in order to realize the objectives of the agreement.”
The Cooperation
Agreement provides a basis for participation by all of the beneficiaries
in project exploration and development activities, in the review of
environmental, social and economic matters related to these activities
and the environmental assessment and permitting of all phases of
development on Selwyn Resources’ mineral claims and leases within the Tulita District. The support of the three Land
Corporations in these activities is positive for the efficient
advancement of the project through the exploration and development
process.
The Cooperation
Agreement provides the three Land Corporations and the beneficiaries
opportunities of employment, training and service contracts in the
exploration and development activities, and establishes a management
committee to deal with all matters related to the project. It also
provides funding for education and training initiatives. Selwyn Resources
will benefit from access to the workforce resident in the Tulita District communities and from their support
for responsible exploration and development on their existing mineral
claims and leases in the Tulita District. In
support of this agreement, Selwyn Resources will employ a Community
Relations Officer to assist in communication between the three Land
Corporations and the beneficiaries and Selwyn Resources and to assist in
the implementation of the Co-operation Agreement.
In recognition
of the achievement of reaching a mutually beneficial agreement, Selwyn
Resources will, amongst other consideration, make a payment of $300,000
to the Tulita District Benefits Corporation
which has been designated by the three Land Corporations to purchase the
shares of the Company by means of a private placement. Selwyn Resources
welcomes the three Land Corporations as a shareholder of the Company. The
Tulita District Benefits Corporation will
purchase 1,578,947 shares of Selwyn Resources at a price of $0.19 per
share. The purchase of the shares is subject to regulatory acceptance. The
shares shall also be subject to a shareholders agreement between Tulita District Benefits Corporation and Selwyn
Resources, which will provide in part that the shares may not be sold for
one year.
Selwyn Resources
is advancing the Selwyn Project, a large lead-zinc deposit at Howards
Pass that spans the Northwest Territories and Yukon border. Advanced exploration on mineral claims in the Yukon have
identified a very large mineral resource. Claims and leases in the
Northwest Territories are largely untested but historic drilling by
previous operators indicates that the mineralization present in the Yukon
extends onto Selwyn claims and leases in the Tulita
District of the Northwest Territories.
This press
release may contain forward-looking statements based on assumptions and
judgments of management regarding future events or results that may prove
to be inaccurate as a result of exploration and other risk factors beyond
its control and actual results may differ materially from the expected
results.
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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
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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