Selwyn Resources is to issue bonds to raise $ 30 million to restart the ScoZinc mine at Gays River in Nova Scotia. The mining at the zinc/lead mine was suspended in 2009 as the metal prices fell and made the operations economically unviable.
The Vancouver based company has now decided to restart the mine as metals prices are reaching records heights. Selwyn Resources have struck a deal with First Securities from Oslo, Norway to sell senior secured bonds to raise the desired funds.
The company was initially to sell 24 million shares to raise the funds but decided against it. Suntura Capital, of Zurich, was to assist with the now abandoned share sale. The shares in the company have risen by 10% on the Toronto Stock Exchange since the announcement, with the company's value estimated value at Canadian $ 86 million.
If all goes as planned, the reopening of the mine after refurbishment and expansion of the mill, will see production as early as 2012. The flagship project for Selwyn Resources is the exploration and development of the Selwyn zinc lead project in Yukon with the partner company Chihong Canada Mining.
Source: Selwyn Resources