Orvana Minerals Corp.
TSX : ORV

Orvana Minerals Corp.

August 13, 2009 10:36 ET

Orvana Urges Kinbauri Shareholders to Tender Their Shares for a 90% Cash Premium While They Can

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2009)- Orvana Minerals Corp (TSX:ORV) today urged shareholders of Kinbauri Gold Corp. to tender their shares to Orvana's all-cash offer of C$0.75 per share. Orvana reminded Kinbauri shareholders that the deadline for tendering shares is 8:00 p.m. Toronto time on Monday August 17, 2009.

Orvana announced that a number of large shareholders who are not part of the previously announced group of locked-up shareholders have tendered to the offer, including Anglo Pacific Group PLC which is both a large shareholder and a significant debt and royalty holder.

"We are pleased to report that many Kinbauri shareholders have already tendered their shares to our all-cash offer," said Kent Jespersen, Chair of Orvana. "It is clear that there are no alternative suitors for Kinbauri. Kinbauri shareholders should now act in their best interests and tender their shares to the offer while they can."

The Orvana offer is subject to customary conditions, including acceptance by shareholders holding at least 66 2/3% of Kinbauri's shares.

How to Tender Kinbauri Shares

Kinbauri shareholders who have questions regarding the offer, tendering shares or, where the certificates representing shares and other required documents cannot be delivered to the depositary prior to the expiry time, submitting a notice of guaranteed delivery should contact Kingsdale Shareholder Services Inc., the information agent in connection 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 an experienced management team that has collectively brought a number of underground mines into production. Orvana had cash of approximately US $96.2 million (C$110.6 million) as at March 31, 2009, which is sufficient to complete the 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 summary information about Orvana's offer and does not constitute an offer to purchase any securities. Complete information about the offer is available by referring to the offer to purchase and take-over bid circular, as amended, that has been filed with Canadian securities regulators. Certain statements contained in this press 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 to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are not based on historical facts, but rather on current expectations, assumptions and projections about future events. While Orvana considers these factors and assumptions to be reasonable based on information currently available, they may be proven to be incorrect. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to; any of the terms and conditions of the offer not being satisfied; general economic conditions; dependence on key personnel; and variations in required capital expenditures. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Contact Information

  • Longview Communications
    Louise Kozier
    (604) 694-6033

    or

    Longview Communications
    Alan Bayless
    (604) 694-6035