NEW YORK Selwyn Resources
Ltd. has agreed to sell the remaining 50-percent stake of its
joint-venture zinc and lead project in Canadas Yukon.
Selwyn will sell its stake to
joint-venture partner Chihong Canada Mining Ltd., a subsidiary
of Chinese zinc and lead producer Yunnan Chihong Zinc &
Germanium Co. Ltd., for $50 million in cash.
After the transaction is
complete, Selwyn will not have an interest in the company, and
the joint venture, Selwyn Chihong Mining Ltd., which was set up
in July 2010, will be terminated, the Vancouver, British
Columbia-based company said.
"The decision to sell
Selwyns 50-percent joint-venture interest in the Selwyn
project reflects the realization of the large capital
requirements that will be needed to advance the Selwyn project
to production and the associated risks to Selwyn shareholders,"
Selwyn president and chief executive officer Harlan Meade said.
"At a time of reduced industry interest in underdeveloped
mineral deposits, Selwyn is satisfied that the timing of this
transaction and the purchase price negotiated are in the best
interests of the shareholders."
Chihong Canada has paid Selwyn a
$5-million cash deposit and will make a second $5-million
payment in early April. It will make the remaining payments at
the close of the transaction, which is expected by June.
Some of the money from the sale
will be used to restart Selwyns ScoZinc Mine in Nova
Scotia, the company said.