Selwyn Resources (CVE:SWN) reported Wednesday that its joint venture for the Selwyn project in the Yukon has inked a resource funding deal with Naha Dehe Dene Band to undertake negotiations of a community agreement regarding project activities.
Selwyn Chihong Mining was formed by Selwyn and Chihong Canada Mining to advance the Selwyn project located in eastern Yukon.
The company noted that it was encouraged by Nahanni Butte's willingness to work with Selwyn to establish a framework for its working relationship.
"The Naha Dehé Dene Band is looking forward to building a strong, productive and mutually beneficial working relationship with Selwyn Chihong," Chief Fred Tesou said in a statement.
"We believe this is an important first step in this process and in establishing an agreement that ensures the community of Nahanni Butte benefits from the Selwyn Project."
The Howard's Pass access road crosses through the traditional territory of Nahanni Butte, which is the preferred route for concentrate shipment and mine supply, the company said.
The Selwyn project, which consists of 7,450-hectares of mineral claims, hosts large tonnages of zinc and lead mineralization which have the potential for large-scale production.
In addition, Selwyn has 19,294-hectares of mineral claims in the Yukon and 3,373-hectares of wholly owned claims in the Northwest Territories.
These claims and mining leases provide Selwyn control over 66 kilometres of the favourable strata in this giant zinc-lead district.
Earlier this week, the lead and zinc explorer closed its previously announced $10 million secured debt facility.
The proceeds will be used by both Selwyn and its subsidiary ScoZinc for general corporate purposes, including activities at its ScoZinc mine in Nova Scotia.
The ScoZinc mine, a past producing zinc-lead mine in Nova Scotia, which the company acquired for $10 million, has a measured and indicated resource of 2.8 million tonnes grading 4.2 percent zinc and 1.9 percent lead.