Important Consideration - Material Change
On March 4, 2013, Selwyn Resources Ltd. announces that it has entered into an asset and share purchase agreement with Chihong Canada Mining Ltd. and Selwyn Chihong Mining Ltd. to sell the company’s remaining 50 % joint venture interest in the Selwyn zinc and lead project in the Yukon Territory for $50 million in cash. Completion of the transaction is subject to certain conditions. After completion of the transaction, Selwyn Resources Ltd. will have no further interest in the Selwyn Project and the JV agreement will be terminated. (See more information in Recent News)
If all conditions to closing are satisfied, it is anticipated that the transaction will be completed by early June 2013. With the proceeds of the transaction, Selwyn Resources Ltd. will be fully financed to fund the re-start of mining and milling operation at ScoZinc Mine in Nova Scotia, which should be in full production Q2 2014.
This page will be updated as soon as the transaction will be completed.
Selwyn Resources Ltd. is the successor to Pacifica Resources Ltd. that underwent a reorganization of its assets in June 2007. Pacifica's acquisition of the Howard's Pass Joint Venture lands in April 2005 consolidated ownership in the Howard's Pass District and the formation of the Selwyn Project. The unprecedented exploration success in the 2005 and 2006 and subsequent programs has produced a world class giant zinc-lead deposit of exceptional potential. In the reorganization, all of Pacifica's assets outside of the Selwyn District in the eastern Yukon were transferred to Savant Explorations Ltd. for common shares of Savant in June 2007.
The restructuring established Selwyn Resources Ltd. as a single purpose company focused on the development of the Selwyn Project as a world class zinc-lead project.
In December 2009 Selwyn announced a strategic joint venture transaction with Yunnan Chihong Zinc & Germanium Co. Ltd. whereby it adquired a 50% interest in the Selwyn Project. The joint venture transaction was completed in August 2010 with the deposit of $100 million into the joint venture bank account and commencement of an approximate $85 millon two-year program to advance the Selwyn Project through bankable feasibility study.
In july 2009, Selwyn decided to broaden its exploration focus and farmed into Savant's Vinata silver-zinc-lead property in Mexico and completed an earn-in agreement whereby it may earn a 55% joint venture interest. However, this project was subsequently terminated as exploration results were not sufficiently encouraging.
The outlook for base metals remains very positive, with the supply-demand fundamentals for zinc and lead looking particularly strong over the next 5 to 10 years as mine development tries to keep up with rapid demand growth and replace production from several mines nearing depletion.
As at January 1, 2012 the Selwyn-Chihong joint venture had spent approximately $78 million dollars and completed much of the mineral resource deffinition drilling, engineering and environmental work necessary to complete a bankable feasibility study. Ongoing work by the joint venture is focused on completing the bankable feasibility study and entering the permiting process for development of a mine and related infrastructure.