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 appoint two directors to board
Jay A. Collins, a professional engineer, has just over 30 years of engineering and construction experience in mining projects. He brings a wide-range of management and leadership expertise both in the field and during pre-development of projects globally.
Currently, he is the president of Merit Consultants International, a construction management and project company to the mining sector.
Prior to re-joining Merit in the late 90's, Collins held senior roles for project development with Fluor, SNC, Teck and Pullman Kellog in the petrochemical industry.
The second appointee, Mark Lettes, served as chief financial officer for Apex Silver Mines from 1998 to June 2006, and has extensive knowledge in mine finance.
While at Apex, he was responsible for financing the large-scale Bolivian San Cristobal silver and zinc mine.
Prior to Apex Silver, Lettes held senior financial roles with Cyprus Amax, Amax and Amax Gold. Now, he is a director for General Moly Inc. (AMEX:GMO), a mineral resource company.
Lettes has also served as a director of Yukon Zinc Corp and Century Mining Corp.
"Their experience in the mining industry and project financing will provide valuable insight as the company advances its core mine development projects," Selwyn chief executive Harlan Mead said in a statement.
The company is also advancing the ScoZinc mine project in Nova Scotia. Last month, the company updated its mineral resource estimate for the Gays River deposit at the ScoZinc mine, increasing measured resources by 55 per cent.
The Gays River deposit includes the main and northeast zones of the ScoZinc mine, a past producing zinc-lead mine, which the company acquired for $10 million in 2011.
Highlights from the updated estimate include an increase of 55 per cent to the base case measured mineral resources, now measured at 2.07 million tonnes grading 3.14 per cent zinc and 1.68 per cent lead.