YUKON – Selwyn Resources of Vancouver has agreed to sell its half of the Selwyn zinc-lead project to its joint venture partner, Chihong Canada Mining for $50 million in cash. After completion of the sale, Selwyn will have no further interest in the project.
Dr. Harlan Meade, president and CEO of Selwyn, stated in a release, that the decision "… reflects the realization of the large capital requirements that will be needed to advance the Selwyn project to production and the associated risks to Selwyn shareholders, including but not limited to, the potential for significant dilution of shareholders' equity in the Selwyn project. At a time of reduced industry interest in undeveloped mineral deposits, Selwyn is satisfied that the timing of this transaction and the purchase price negotiated are in the best interests of the shareholders."
Completion of the sale is subject approval by Selwyn shareholders, Chihong's parent company and the Chinese government. The detailed terms and conditions will be disclosed in an information circular to be mailed by the end of March 2013. Visit SelwynResources.com to read it when it is available.