Monday, 16 April 2012

Selwyn Resources closes $10-mln debt facility

Lead and zinc explorer Selwyn Resources (CVE:SWN) closed its $10 million secured debt facility, the company said Monday.
The proceeds will be used by both Selwyn and its subsidiary ScoZinc for general corporate purposes, including activities at its ScoZinc mine in Nova Scotia.
Last week, the company announced it reached an agreement with Waterton Global Value for a $10 million non-revolving secured loan.
Selwyn has already drawn down $2 million under the debt facility, which allows ScoZinc to draw down a total of $3 million of the principal amount prior to receiving the industrial authorization for the southwest expansion of the main pit at the ScoZinc mine from the Nova Scotia government.
The company can then draw the remaining $7 million for a period of 20 months.
The ScoZinc mine, a past producing zinc-lead mine in Nova Scotia, which the company acquired for $10 million, has a measured and indicated resource of 2.8 million tonnes grading 4.2 percent zinc and 1.9 percent lead.
Selwyn's primary focus remains the exploration and development of the properties that make up the Selwyn project in the Yukon, which is operated by the joint venture comprised of Selwyn and Chihong Canada Mining.
Cash flow from the start up of the ScoZinc mine is anticipated to help fund the development of the Selwyn project.

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