Orvana Minerals Corp.

Orvana Minerals Corp.

August 18, 2009 09:00 ET

Orvana Takes Up Kinbauri Shares and Extends Offer Until August 28, 2009

TORONTO, ONTARIO--(Marketwire -Aug. 18, 2009) - Orvana Minerals Corp (TSX:ORV) today announced that a total of42,673,308 Kinbauri common shares were validly tendered as of August 17, 2009under Orvana's offer to purchase all of the outstanding shares of Kinbauri. Orvana has waived the condition of its offer that not less than 66 2/3% of theshares of Kinbauri (calculated on a fully-diluted basis) shall have beendeposited under the offer. As all conditions of the offer have been satisfiedor waived, Orvana has taken up the 42,673,308 shares tendered to date under theoffer.

Based on information reported onKinbauri's website as of August 6, 2009, the shares taken up by Orvanarepresent 64.0% of the shares of Kinbauri on a diluted basis after taking intoaccount in-the-money options and warrants with an exercise price of less than$0.75, and 59.8% of the shares of Kinbauri on a fully-diluted basis aftertaking into account all outstanding options and warrants, whether or not in themoney.

Payment of $0.75 per share forKinbauri shares that have been validly tendered to the Orvana offeras of August 17, 2009 will be made to the Depositary, Kingsdale ShareholderServices Inc., on or before August 20, 2009.

Orvana also announced that it hasextended its offer for an additional ten days to permit additional shares to betendered. The offer is now set to expire at 11:59 p.m. (Vancouver Time) onAugust 28, 2009. Orvana will pay the Depositary for additional sharesdeposited under the offer within three business days after Orvana takes up suchshares. Orvana will mail to Kinbauri security holders and file on SEDAR aNotice of Extension of the offer.

As explained in its bid circular,Orvana intends to take action intended to permit Orvana to acquire the remainingshares of Kinbauri that it does not own at $0.75 per share as soon aspracticable, including seeking approval of such acquisition at a meeting ofKinbauri shareholders.

How to Tender Kinbauri Shares

Kinbauri shareholders who havequestions regarding the offer, tendering shares or, where the certificatesrepresenting shares and other required documents cannot be delivered to thedepositary prior to the expiry time, submitting a notice of guaranteed deliveryshould contact Kingsdale Shareholder Services Inc., the information agent inconnection with the offer, at 1-800-749-9052 (toll-free) or 416-867-2273(outside North America).

About Orvana

Orvana is a well-established mine operator with anexperienced management team that has collectively brought a number ofunderground mines into production. Orvana had cash of approximately US $96.2million (C$110.6 million) as at March 31, 2009, which is sufficient to completethe acquisition of Kinbauri and develop Kinbauri's Spanish mineral project.Orvana expects that the project will create up to 200 new jobs in Spain.

Forward-looking disclaimer

This press release contains only summaryinformation about Orvana's offer and does not constitute an offer to purchaseany securities. Complete information about the offer is available by referringto the offer to purchase and take-over bid circular, as amended, that has beenfiled with Canadian securities regulators. Certain statements contained in thispress release concerning Orvana's objectives, goals, strategies, intentions,plans, beliefs, expectations and estimates, and the business, operations,financial performance and condition of Kinbauri are forward-looking statements.The words "believe", "expect", "intend", "may", "anticipate", "will", "would"and similar expressions and the negative of such expressions are intended toidentify forward-looking statements, although not all forward-lookingstatements contain these identifying words. These forward-looking statementsare not based on historical facts, but rather on current expectations,assumptions and projections about future events. While Orvana considers thesefactors and assumptions to be reasonable based on information currentlyavailable, they may be proven to be incorrect. Known and unknown factors couldcause actual results to differ materially from those projected in theforward-looking statements. Such factors include, but are not limited to, risksrelating to any failure by Orvana to acquire the remaining outstanding sharesof Kinbauri that it does not own; general economic conditions; dependence onkey personnel; and variations in required capital expenditures. Given theseuncertainties, readers are cautioned not to place undue reliance on suchforward-looking statements.

Contact Information

  • Longview Communications
    Louise Kozier
    (604) 694-6033


    Longview Communications
    Alan Bayless
    (604) 694-6035


    Orvana Minerals Corp.
    Malcolm King
    (416) 369-1629