www.selwynresources.com
Selwyn with its 50% joint venture partner, Yunnan Chihong Zinc & Germanium Co. Ltd., is advancing the Selwyn Project in Yukon and Northwest territories to bankable feasibility and development. Chihong is funding the next $100M of exploration and development activities. Chihong is a fully integrated mining and smelting company based in southern China. Together the partners will seek project financing from Chinese banks.
Selwyn Project hosts perhaps the largest undeveloped zinc-lead deposit in the World. Initial mine development will focus on 16.06M tonnes of high grade Indicated mineral resources grading 10.06 % zinc and 4.23% lead and 26.70M tonnes grading 8.81% zinc and 2.81% lead. Initial mine production is forecast at 255,000 tpa of zinc and 65,000 tpa of lead in concentrate; commencing as early as late 2013, coinciding with forecast shortfalls in mine supply.
Selwyn Resources sees Transaminvest take 7% stake through recent financing
Selwyn Resources (CVE:SWN) said Thursday that commodity trading company Transaminvest has invested $7.0 million as part of the company's $15 million special warrant financing, for which it closed the second tranche of on Tuesday.
Selwyn has so far raised $11.8 million from the two tranches of the financing. The third part is expected to close tomorrow.
Transamine acquired 28.0 million units, convertible into 28.0 million common shares of Selwyn. Each unit also includes one half of a warrant, with each whole warrant entitling the holder to purchase one additional share at a price of $0.40 for a period of two years from May 27, 2011, the date the first tranche of the offering closed.
As a result of the investment, Transamine has become Selwyn's fourth largest shareholder, with a 7% stake.
"We look forward to working with Transamine and benefiting from their in-depth knowledge, intelligence and expertise in the base metals sector as we seek buyers for concentrates from the Scotia Mine," said Selwyn president and CEO Dr. Harlan Meade.
Yesterday, the company completed its $10 million acquisition of ScoZinc, which owns the Scotia lead-zinc mine in Nova Scotia. A new mine plan and economic model is currently in preparation for the Scotia Mine, which is expected to resume operations in early 2012.
President of Transamine, Helge Schmidt, commented: "We are confident in the company's ability to develop Selwyn Resources into an important mid tier zinc and lead producer over the near term."
Aside from the Scotia Mine, Selwyn's primary focus remains the exploration and development of the Selwyn project in the Yukon, under a joint venture with Chihong Canada Mining.
The acquisition of the Scotia mine is expected to provide Selwyn with cash flow to fund the growth and advancement of the Selwyn project.
Transamine, founded in 1953, pursues trading activities, provides services in marketing, raw material sourcing, logistic as well as financial support to existing mines and junior mining companies through direct investments for start-ups or expansions.
