Selwyn Resources (CVE:SWN) reported Wednesday that its joint venture for the Selwyn project in the Yukon has inked a resource funding deal with Naha Dehe Dene Band to undertake negotiations of a community agreement regarding project activities.
Selwyn Chihong Mining was formed by Selwyn and Chihong Canada Mining to advance the Selwyn project located in eastern Yukon.
The company noted that it was encouraged by Nahanni Butte’s
willingness to work with Selwyn to establish a framework for its working
"The Naha Dehé Dene Band is looking forward to building a strong,
productive and mutually beneficial working relationship with Selwyn
Chihong,” Chief Fred Tesou said in a statement.
"We believe this is an important first step in this process and in
establishing an agreement that ensures the community of Nahanni Butte
benefits from the Selwyn Project."
The Howard’s Pass access road crosses through the traditional
territory of Nahanni Butte, which is the preferred route for concentrate
shipment and mine supply, the company said.
The Selwyn project, which consists of 7,450-hectares of mineral
claims, hosts large tonnages of zinc and lead mineralization which have
the potential for large-scale production.
In addition, Selwyn has 19,294-hectares of mineral claims in the
Yukon and 3,373-hectares of wholly owned claims in the Northwest
These claims and mining leases provide Selwyn control over 66
kilometres of the favourable strata in this giant zinc-lead district.
Earlier this week, the lead and zinc explorer closed its previously announced $10 million secured debt facility.
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.
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