TSX-V: AUV
LA MACAZA, QC, June 29, 2011 /CNW Telbec/ - Augyva Mining Resources Inc. wishes to announce that Niocan Inc. has not given any response to its $4 million financing proposal of June 23, 2011 within the prescribed time set forth in the proposal.
The offer was higher than the agreement discussed but not yet concluded between Niocan and Forbes & Manhattan, Inc. and includes, most notably, the following elements and advantages.
Augyva proposed to subscribe for 3,076,923 units (the "Units") of Niocan at a price per Unit of C$1.30, for aggregate gross proceeds to Niocan of C$4,000,000, the whole by way of a private placement financing (the "Proposed Private Placement"). The price per Unit represented a 22.6% premium to the closing price of Niocan's common shares on the Toronto Stock Exchange on June 24, 2011
Under the terms of the revised proposed private placement, each unit would consist of one common share in the capital of Niocan and one-half of one common share purchase warrant. Each warrant would entitle Augyva to purchase one additional common share at an exercise price of $1.35 per share for a total period of 24 months.
The revised proposed private placement was subject only to the negotiation of a definitive subscription agreement and the approval of the Toronto Stock Exchange. The closing of the proposed private placement was not subject to any due diligence investigation by Augyva.
"Augyva believes that this offer was the best offer submitted to Niocan and has no explanation as to why Niocan's executive leadership would refuse, especially in light of its obligation to increase shareholder value and the failure of its negotiation with Forbes & Manhattan, Inc.", said Georges-Yvan Gagnon, president and chief executive officer".
About Augyva Mining Resources Inc.
Augyva is an exploration and development company holding five (5) properties located in the James Bay and Abitibi regions of the Province of Quebec. Its major project under development is the Duncan Lake Property located in the western part of the La Grande Greenstone Belt and hosts Algoma type iron deposits in a volcano-sedimentary sequence. The property, directly accessible by road, covers 5,848 hectares. Further to a drilling program of over 10,000 meters, completed in May 2009, a National Instrument NI 43-101 compliant technical report on the mineral resource estimate (the "Technical Report"), prepared by Met-Chem Canada Inc. ("Met-Chem"), was released in March 2010. Met-Chem has further continued to carry out an internal opportunity study of the property. Augyva also awarded Roche Ltd. the mandate to carry out an environmental scoping study (ESS) for the project. Other iron and related opportunities continue to be evaluated on an ongoing basis.
In addition to advancing the Duncan Lake Iron Ore Project, Augyva holds an 100% interest on four (4) highly prospective gold and base metal properties: Yasinski (gold, platinum, chromite and other base metals) and Kali (gold, copper and other base metals) in the James Bay region, and: Senneville (gold) and Malartic (gold) in the Abitibi region. For more information about Augyva, go to www.augyva.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Augyva's disclosure documents on the SEDAR website at www.sedar.com. Augyva does not undertake to update any forward looking information except in accordance with applicable securities laws.
