Mineral explorer Selwyn Resources (CVE:SWN) reported Monday it plans to launch a $30 million bond financing, while it also intends to kybosh a previously announced 24 million share offering.
The new bond financing agreement with First Securities AS of Norway will involve the sale of senior secured bonds. Terms of the financing will not be determined until the offering's completion, the company said in a statement.
Selwyn said no offering memorandum will be prepared or distributed in connection with the offering. It is expected the company will issue warrants to purchase common shares of Selwyn to the investors being allocated bonds in the offering.
Selwyn plans to use the proceeds from the financing to restart the ScoZinc Mine, a past producing zinc-lead mine in Nova Scotia, which the company recently acquired for $10 million. Profits from ScoZinc are intended to fund the development of the company's Selwyn project in the Yukon.
Closing of the bond financing will be subject to certain conditions, including receipt of an amended industrial authorization for the expansion of the mine pit and relevant corporate resolutions, the company said.
In separate news, Selwyn said that it has cancelled a previous arrangement with Switzerland-based Suntura Capital, under which it had agreed to sell up to 24 million common shares outside of Canada and the United States, on a best efforts basis.
Initially, the stocks were to be sold at a five-day, volume-weighted average price of 25 cents per share. However, the companies said that due to market conditions, they have ceased their arrangement, and none of the 24 million common shares were sold.