Selwyn Resources (CVE:SWN) says it has received the second $5 million deposit payment from joint venture partner Chihong Canada Mining in relation to the $50 million sale agreement it reached last month for the Selwyn project in the Yukon.
In early March, Selwyn agreed to sell its 50 percent interest in the project to its partner, Chihong Canada Mining, for a total price of $50 million, with the company now receiving a total of $10 million as a deposit toward the full price.
The remaining $40 million balance will be paid to Selwyn at the closing of the deal, which still needs the approval of at least two thirds of Selwyn shareholders at an annual general meeting later this month.
The deal is also subject to the board approval of Chihong's parent company, Yunnan Chihong Zinc & Germanium Co, as well as certain Chinese governmental approvals.
Selwyn said Tuesday that holders of no more than 10 percent of its shares have exercised dissent rights with regards to the transaction, which has been conditionally approved by the TSX Venture Exchange.
The company expects the sale to wrap up by no later than early June, it said in the statement. If the deal does not close, the deposits must be refunded to Chihong Canada.
Selwyn is planning to use the proceeds from the deal to repay its outstanding debt, as well as for the restart of production at its ScoZinc mine in Nova Scotia.
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