<![CDATA[Selwyn Resources – Harlan Meade is out, company will distribute cash to shareholders]]>

<![CDATA[Selwyn Resources – Harlan Meade is out, company will distribute cash to shareholders]]>See the press release filed on SEDAR.

Joseph Ringwald, the VP of mining, becomes the new CEO.
The company states that it has excess cash and intends on distributing it to shareholders.
It will retain some cash to cover corporate overhead and the costs of keeping the ScoZinc project on care and maintenance.

[…]the Board has determined that the optimum course of action is to effect a return of capital (“ROC”). The Board is in the final stages of determining the exact amount of the distribution; however, it is the Board’s intention to pay out as much as reasonably practical, while reserving sufficient capital to maintain the ScoZinc Project on a care and maintenance basis and cover corporate expenses.

My guess is that the company will issue a cash dividend around 6-8 cents/share and the shares will trade at 1-3 cents/share. This will likely be followed by a reverse split of the stock.

I am long Selwyn and may sell a large portion of my position at 9 cents/share. The current bid/ask is 8.5/9.0 cents. If the ScoZinc project sells for several million dollars or more, then the company will be worth more than 9 cents/share.

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