Following a year-long boardroom struggle that saw cancelled AGMs, bogus company news releases, unofficial shareholder meetings, a project sold off to Chinese partners, a dissident boardroom takeover, halted plans for a mine resumption, and the return of company capital to investors, stock in Selwyn Resources (TSX:V.SWN
, Stock Forum
) dropped 81.25% Tuesday to just $0.015.
And it may just be the happiest day investors have had all year.
The fall-off completed a 95% fall from grace since the halcyon days of 2011, when Selwyn was looking to dominate the zinc business and shares hit $0.37.
Selwyn was at one time a high flying zinc/lead player
, with an expansive project in the Yukon and a willing and cashed up partner in Yunnan Chihong Zinc & Germanium Co. Ltd., but a drop in zinc prices saw plans go skewiff as financing became hard to come by.
A $50 million project sell-off
to Chihong followed, and the board and large shareholders disagreed on how to spend the cash. The dissidents wanted it back in the hands of investors, while the board saw value in using the money to start production at a secondary project, the ScoZinc play in Nova Scotia.
The dissidents won
But not before the board postponed AGMs and dissidents called their own meetings
in which they claimed to have fired the CEO and President
, among other things
Earlier this month, the new board calculated a return of 7c per share
, or $27 million in total, would be appropriate for investors, dispensing of cash in hand and putting ScoZinc under care and maintenance while it waited for a rise in resource prices or an offer to sell.
As the cheques rolled out, a 100:1 stock consolidation was voted in, bringing shares outstanding to 3.94 million and all but wrapping up the show as a going concern.
So if you’re still wondering why Selwyn dropped 6.5c today? It’s because shareholders got 7c a share back – which, in this market, and considering what Selwyn has been through in 2013, is nothing short of a Christmas miracle.