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
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.
SOURCE AUGYVA MINING RESOURCES INC.
For further information:
Frédéric Bérard, Attorney
HKDP Communications and Public Affairs
Tel.: 514-395-0375, ext. 259
Georges-Yvan Gagnon - P. Geologist
President and Chief Executive Officer