COOKS BROOK, NOVA SCOTIA–(Marketwired – Jan. 16, 2015) – Selwyn Resources Ltd. (TSX VENTURE:SWN) (“Selwyn” or the “Company”) announces that Scotian Zinc Mines Ltd. (“Scotian”) failed to fulfill its closing obligations under the definitive purchase and sale agreement previously executed by the parties (the “Agreement”) by the closing deadline of Friday, January 16, 2015. As a result, the Agreement is terminated.
The Selwyn Board is extremely disappointed that Scotian did not fulfill its obligations under the Agreement despite the granting of two closing extensions and repeated assurances to the contrary from Mr. Glenn Laing, President and CEO of Scotian. The Company intends to pursue any and all available remedies.
The Company continues to believe that the ScoZinc Project is a valuable asset and accordingly, as a result of the termination of the Agreement, the Company now intends to reopen discussions with other parties to maximize the value of the ScoZinc Mine and its related exploration projects immediately. These opportunities may include, but are not limited to, the possible sale, joint venture or other transactions with third parties. Except as required by law, the Company does not intend to disclose developments with respect to the consideration of strategic alternatives until warranted. The Company cautions that there are no assurances that any strategic alternative will be undertaken or pursued.
Selwyn is well funded with a cash balance of approximately $4.6 million at December 31, 2014, which is sufficient to maintain the ScoZinc Mine on care and maintenance for several years.
Selwyn is an established Canadian-based zinc and lead exploration and development company that owns the ScoZinc Mine near Halifax, Nova Scotia, that has the necessary approvals to restart operations. Selwyn has a strong working capital position and no debt. Selwyn has 3,941,046 common shares outstanding, which are traded on the TSX Venture Exchange under the symbol “SWN”.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain “forward-looking statements”. All statements other than statements of historical fact included in this release, including without limitation statements regarding the future plans and objectives of Selwyn, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to pursuing available remedies in connection with the termination of the Agreement, and the Company’s intention to reopen strategic discussions with other parties, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Selwyn’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section titled “Risk Factors” in Selwyn’s Management’s Discussion and Analysis for the year ended December 31, 2013. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.