NOVA SCOTIA – Selwyn Resources of Vancouver has announced it will issue bonds to raise $30 million with which to restart the ScoZinc (aka Scotia) zinc-lead mine at Gays River. Mining was suspended in early 2009 as metals prices fell in the wake of the global economic crisis.
Selwyn has entered into an agreement with First Securities of Oslo, Norway, to raise $30 million from the sale of senior secured bonds. The money is earmarked for reopening the former producer. Production could begin early in 2012 after the successful refurbishment and expansion of the mill.
Selwyn raised $12.8 million in equity financing with which it purchased the former producer. However, the company withdrew from a $24 million common share offering made earlier this year due to lack of sales. Selwyn expects to issue share purchase warrants to investors participating in the current bond offering.
Selwyn’s flagship undertaking is the exploration and development of the Selwyn zinc-lead project in the Yukon with partner Chihong Canada Mining. More information is available at www.SelwynResources.com.