Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Selwyn Resources Ltd. (“Selwyn”) (TSX VENTURE:SWN) today announced that it has closed the third tranche of its Special Warrant offering through Paradigm Capital Inc. as lead agent on behalf of a syndicate including Canaccord Genuity Corp., raising an additional CAD$990,000 from the sale of 3,960,000 Special Warrants. With the closing of the third tranche Selwyn raised a total of CAD$12,784,500, and had earlier completed the acquisition of ScoZinc Limited.
Each Special Warrant will be exercisable for no additional consideration into one common share (“Common Share”) of Selwyn and one-half of one Common Share purchase warrant (“Warrant”) of Selwyn upon the earlier to occur of Selwyn clearing a prospectus (the “Prospectus”) in applicable Canadian jurisdictions, and the date that is four months and one day after the applicable closing date for the Offering. Each whole Warrant will entitle the holder thereof to purchase one Common Share at $0.40 for a period of 24 months after the closing date of the Offering. If the Prospectus has not been cleared by July 8, 2011, each Special Warrant, other than those purchased by residents of Quebec, will be exercisable into 1.1 Common Shares and 0.55 of a Warrant.
About Selwyn Resources Ltd.
Selwyn’s main focus remains the exploration and development of its properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The acquisition of the Scotia Mine will provide Selwyn with a new opportunity for growing the company, expanding its management team, and providing cash flow to fund growth as it advances the Selwyn Project.
