Additional Information
Market: TSX-V
Sector: General Mining
EPIC: SWN
Latest Price: 3.55  (0,00%)
52-week High: 8.50
52-week Low: 1.50
Market Cap: 13.99M
1 year chart
1 day chart
Selwyn Resources
www.selwynresources.com

 

Selwyn has entered into a sale transaction with Chihong Canada Mining Ltd. to sell its 50% interest in Selwyn joint venture project in Yukon and Northwest territories, for CAD 50.0 Million. The transaction was approved by the Selwyn shareholders at the April 22, 2013 Special Meeting and is expected to be closed in early June 2013 together with the payment of the remaining CAD 40.0 Million. 

Selwyn acquired ScoZinc Ltd in 2011 for CAD 10.0 Million and with a plan to re-start operation and join the “Producer group”. The time required to resume production at ScoZinc is approximately 9 months, with an estimated production of 2,500 tpd (Zinc and Lead) mine and mill operations. The Selwyn Board has indicated that it wishes to have the funds from the sale of its interest in the Selwyn Project to fund the restart of ScoZinc mine if warranted and grow of the company as a new base-precious metal producer.

 

Selwyn Resources suspends strategic review process

6th Sep 2012, 11:02 am by Deborah Sterescu
The Selwyn project is managed by Selwyn Chihong Mining, a joint venture between Selwyn and Chihong Canada Mining, a subsidiary of Yunnan Chihong Zinc and Germanium Co., one of China's largest mine and smelter operators. The Selwyn project is managed by Selwyn Chihong Mining, a joint venture between Selwyn and Chihong Canada Mining, a subsidiary of Yunnan Chihong Zinc and Germanium Co., one of China's largest mine and smelter operators.

Selwyn Resources (CVE:SWN) said today that it has suspended its previously announced strategic review process, which included a potential sale of the zinc and lead explorer.  

"In light of our limited financial resources and the commitments necessary to bring the Selwyn Project to completion, we announced a strategic process on April 17, 2012," said company chairman, Wade Nesmith. 

"We have been conducting this process in some of the worst economic times in recent memory, and the process has so far failed to identify a transaction acceptable to the Board."              

During the strategic review, the company said its advisers reviewed the potentially interested parties and contacted "a number of them to determine what interest, if any, they had in a possible transaction with Selwyn." 

The process quickly focused on engaging Chihong Canada Mining, Selwyn's joint venture partner on the Selwyn project in the Yukon, in discussions regarding the sale to Chihong of the company's interest in the partnership. 

Those negotiations, which were initially positive, Selwyn said, did not result in "an acceptable purchase agreement". 

The miner noted that Chihong refused to accept terms that Selwyn believed "are fundamental to any agreement that would be in the best interests of its shareholders."                

"Management and the Board are committed to doing our best to make this company successful," continued Nesmith. 

"External economic forces are making things extremely difficult. In order to secure more time to achieve our near and medium term goals, Harlan Meade, Chief Executive Officer, has been directed to raise additional working capital sufficient to advance the company's business plan."                

Last month, Selwyn announced an updated development plan for its Selwyn zinc-lead project in the Yukon after prior feasibility work on the property was terminated. 

The new plan includes a 3,500 tonne per day combined mining rate from the XY Central and Don deposits, with increased mill feed grade of 10% to 12% combined zinc and lead content. 

Aside from the new mining rate, the updated plan also includes a workforce reduction to 400 from previous estimates - expected to result in lower camp capital and operating costs. 

The revised mine plan includes only the XY Central and Don deposits, representing only a small portion of the overall known indicated mineral resources for the Selwyn project, which are currently 185.6 million tonnes grading 5.20% zinc and 1.79% lead at a 2.0% zinc cut-off grade. 

The Selwyn project is managed by Selwyn Chihong Mining, a joint venture between Selwyn and Chihong Canada Mining, a subsidiary of Yunnan Chihong Zinc and Germanium Co., one of China's largest mine and smelter operators. 

Selwyn is also working on restarting a former zinc-lead mine in Nova Scotia, where it recently announced a boost in resources to one of its deposits. 

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here