Selwyn Resources (CVE:SWN) on Tuesday said that it has closed the second tranche of its $15 million special warrant financing through Paradigm Capital.
The mineral explorer raised $4.68 million from the sale of 18.7 million special warrants. The company said that a third tranche of the offering is expected to be completed by June 3.
On May 27, 2011, the company closed the first part of the $15 million special warrant offering, first announced in late March.
Each special warrant will be convertible into one common share of Selwyn and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at $0.40, for a period of 24 months after the closing date of the offering.
The proceeds will be used by Selwyn to finance the acquisition of ScoZinc, which owns the Scotia zinc-lead mine-mill complex in Novia Scotia, from Acadian Mining Corp. The acquisition is expected to close on or about May 31, 2011.