The Financial Post reports in its Monday edition that Selwyn Resources' shareholder meeting on Monday is likely to be a lively affair.
The Post's Barry Critchley writes that a battle commenced when Selwyn agreed, subject to receiving shareholder approval, to sell its 50-per-cent interest in the Selwyn lead and zinc project to its 50-per-cent partner Chihong
Canada Mining Ltd. The meeting is to approve such a transaction, worth $50-million to Selwyn. Selwyn planned to use the net proceeds to develop the ScoZinc mine, a zinc project in Nova Scotia.
Then, last week, along came a dissident shareholder, Toronto-based Samara Capital
Inc., which announced it was soliciting proxies to approve the sale of Selwyn's interest in the lead and zinc project, and then to take steps to wind up the company, which essentially meant it wanted to find a buyer for the ScoZinc operation.
Samara wanted the shareholders to receive a payout, expected to be about 10 cents a share, arguing that it was uneconomic to proceed with developing the mine at current prices. Samara proposed five nominees, three of whom were outsiders, while agreeing to keep two of the six nominees proposed by Selwyn.
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