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 a publicly traded, Canadian base metals exploration and development company. The company's core project is the World class Selwyn Project, located in eastern Yukon. The Selwyn Project has reactivated the Howard's Pass zinc-lead district, and in the period 2005 to 2009 the company has invested approximately $70M to define Selwyn deposit as one of the largest undeveloped zinc-lead deposit in the world.
Selwyn completed (in August 2010) a 50:50 Joint Venture Agreement with Yunnan Chihong Zinc and Germanium Co. Ltd. Yunnan Chihong, is a fully integrated zinc-lead mining and smelting company based in Yunnan Province in southern China. Yunnan Chihong, through its Canadian Subsidiary, Chihing Canada Mining Ltd., will invest $100 Million to advance the Selwyn Project to bankable feasibility and complete permitting. Selwyn and Yunnan Chihong have formed Selwyn Chihong Mining Ltd. to advance the project and have launched an approximate $85M exploration and development program of definition drilling, engineering and permitting to complete a bankable feasibility study.
Chihong and Selwyn have agreed to pool their interests for the purposes of securing senior debt financing from the export banks in China, providing a clear path forward for project financing and a timeline for completion of project financing and mine/mill construction. Access to the Asian markets for project financing is seen as a very positive development for Selwyn and Selwyn Project.
Initial mine planning is focused on new high grade mineral resources with proposed mining of 8000 tpd from underground mines at the XY Central and Don deposits to produce approximately 255,000 tpa of zinc and 65,000 tpa of lead and be one of the largest zinc-lead mines in the world. With probable future expansions with development of other mineral zones, production will likely rival the largest producers.
Please see the Company’s published information for complete disclosure of the above information.