TORONTO, Sept. 20 /CNW/ - Nyah Resources Corp. (TSXV: NRU) ("Nyah", or the "Corporation") announces that, further to its press release dated September 16, 2010, Forbes & Manhattan (Coal) Inc. ("Forbes Coal") has received approval from the South African Reserve Bank ("SARB") of the acquisition by Forbes Coal of all of the issued and outstanding shares of Slater Coal (Pty) Ltd. ("Slater Coal") pursuant to the sale agreement between Forbes Coal and the Slater Coal vendors dated April 13, 2010 in respect of Slater Coal, as amended (the "Slater Coal Agreement"), all as more particularly described in the management information circular of the Corporation dated August 20, 2010 (the "Circular"). As part of granting the approval, Forbes Coal has agreed to undertake to list the common shares of the Corporation on the Johannesburg Stock Exchange within 12 months of the date hereof. In addition, SARB has requested that the mechanics of the transfer of the issued and outstanding shares of Slater Coal (the "Slater Coal Shares") to Forbes Coal as set out in the Slater Coal Agreement be revised. Under the current structure, Forbes Coal owns 100% of the Slater Coal Shares and all of the Slater Coal Shares have been pledged back to the Slater Coal vendors pending completion of the remaining two payments of the purchase price pursuant to the Slater Coal Agreement. SARB has requested that the Slater Coal Shares be transferred in tranches in proportion to the amount of the aggregate purchase price paid for such shares in accordance with the Slater Coal Agreement. To date, Forbes Coal has paid ZAR320 million of the aggregate ZAR600 million purchase price. As such, Forbes Coal will now hold 53.5% of the Slater Coal Shares, with the remaining 47.5% to be transferred to Forbes Coal incrementally and proportionately upon payment to the Slater Coal vendors of the remaining instalments of the purchase price. Although the mechanics for the transfer of the Slater Coal Shares to Forbes Coal have been modified by the parties in order to obtain SARB approval, the revenue derived from the Aviemore property and the Magdalena property (together, the "Slater Coal Properties") will continue to be for the benefit of Forbes Coal.
The Corporation further advises that Forbes Coal has received a letter from the counsel to Leeuw Mining & Exploration (Pty) Limited expressing concern as to the transfer to Slater Coal of the mining claims currently held by Leeuw Mining & Exploration (Pty) Ltd. and comprising part of the Aviemore property. Management of Forbes Coal is in discussions with the management of Slater Coal concerning this issue and has been advised that a deposit has been placed in connection with the transaction and expects to complete the definitive agreement and transfer of the property in due course.
About Nyah Resources Corp.
Nyah is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol NRU. The Corporation currently has cash on hand of approximately $1.0 million. Nyah holds a 100% interest in two separate exploration claim blocks. The Agnew Lake North Uranium Property (the "Property"), which is the most advanced of the Corporation's claim blocks, consists of seven unpatented mining claims (1,575 ha equals 3,892 acres) located approximately 40 kilometres west of Sudbury, Ontario. The Property encompasses the past producing Agnew Lake Uranium Mine. The Agnew Lake Uranium Mine was operated by Kerr Addison Mines Ltd between 1977 and early 1983 and produced approximately 1.9 million pounds of uranium. The Property has substantial underground infrastructure in place, including a six compartment shaft to a depth of over 980 metres with development on several levels. A decline from surface to the 1,900 foot level was also developed. During the period of operation 2 mineralized zones were developed. In addition to the past producing uranium mine, the Property covers approximately six kilometres of favourable geology possibly containing uranium mineralized horizons. In addition, the Corporation holds claim blocks (Agnew Lake South) in the highly prospective Elliot Lake-Blind River uranium district.
As previously announced, Nyah has entered into an agreement with Valencia Ventures Inc. ("Valencia") for the sale to Valencia of the Agnew Lake properties held by Nyah in consideration of a cash payment of $500,000 and additional payments valued at $500,000 in cash or common shares of Valencia, at the election of Valencia. The sale of the Agnew Lake properties constitutes a non-arm's length transaction for the purposes of the TSX Venture Exchange as Nyah and Valencia have common directors and officers. For further information regarding Nyah, please visit the Corporation's website at www.nyahresources.com.
About Forbes Coal
Forbes Coal is a private Ontario coal mining company that has entered into an agreement with the shareholders of Slater Coal (Pty) Ltd., a South African company ("Slater Coal") to acquire Slater Coal and its interests in its coal mines in South Africa (the "Slater Coal Properties"). The Slater Coal Properties comprise the operating Magdelena bituminous mine (the "Magdelena Property") and the Aviemore anthracite mine (the "Aviemore Property") and have a substantial resource base of bituminous and anthracite coal. The Slater Coal Properties are located in the Klipriver coalfield, near Dundee, in the KwaZulu Natal Province of South Africa and can be accessed via the N3, N11 Ladysmith and R102 Dundee tarred national highways that run between Johannesburg and Durban, South Africa.
Cautionary Note Regarding Forward-Looking Information This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of Nyah and Forbes Coal and its projects, statements regarding the prospects for the business of Forbes Coal, statements regarding synergies and financial impact of the proposed transaction, the terms and conditions of the transaction, the benefits of the proposed transaction, the costs of and capital for harvesting projects, harvesting expenditures, timing of future acquisitions of additional properties and applicable licences, requirements for additional capital, government regulation of the mineral exploration industry, environmental risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company (and the company resulting from the successful completion of the proposed transaction) to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE 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.
For further information:
Nyah Resources Corp.
George Faught
President and CEO
(416) 861-5887
Email: [email protected]
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