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Selwyn Resources closes debt facility for Canadian Mine

17 April 2012

Selwyn Resources

Selwyn Resources has closed a $10m non-resolving debt facility with Waterton Global Value, the company has announced.

The proceeds will be used by Selwyn's subsidiary ScoZinc for general corporate purposes, including activities at the ScoZinc Mine in Nova Scotia, Canada.

The facility allows the company to draw down $3m prior to receiving authorisation from the provincial government for the south-west expansion of the main pit of the mine.

ScoZinc also has the option withdraw the remaining $7m over a period of 20 months.

The announcement of the closure comes on the same day as Selwyn reported presence of thick high-grade zinc-lead mineralisation in the Don Connector target between the Don and Don East deposits at its project in Yukon Territory, Canada.

Selwyn Resources president and CEO Harlan Meade said, "The confirmation of thick intercepts of zinc-lead mineralisation in the Don Connector target adjacent to the Don deposit demonstrates the strong continuity of high-grade mineralisation in the Don Valley and opens up opportunities for the joint venture."

Currently, Selwyn is advancing the feasibility study for the project where fourteen drill holes were successfully drilled.

Image : Selwyn Resources plans to undertake the southwest expansion of the main pit of the ScoZinc Mine in Nova Scotia, Canada. Photo Selwyn Resources