Orvana Minerals Corp.
TSX : ORV

Orvana Minerals Corp.

September 22, 2009 10:17 ET

Orvana to Commence Compulsory Acquisition of Kinbauri Gold Corp. Shares

TORONTO, ONTARIO--(Marketwire - Sept. 22, 2009) - Orvana Minerals Corp.(TSX:ORV) announced today that its wholly-owned subsidiary, Orvana Minerals Acquisition Corp., will be acquiring all of the shares of Kinbauri Gold Corp. that it does not already own pursuant to the compulsory acquisition provisions of the Canada Business Corporations Act.
 
As a result of Orvana's successful take-over bid for Kinbauri that expired on August 28, 2009, Orvana now holds approximately 95% of the outstanding shares of Kinbauri. Orvana intends to acquire the remaining 5% that it does not currently own by compulsory acquisition on or about September 28, 2009. Under the compulsory acquisition, Kinbauri shareholders who do not exercise statutory dissent rights will be entitled to receive $0.75 per Kinbauri share. Upon completion of the compulsory acquisition, Orvana intends to apply to have the common shares of Kinbauri delisted from the TSX Venture Exchange and to have Kinbauri cease to be a reporting issuer under Canadian securities laws.
 
Orvana had previously announced the proposed amalgamation of Orvana Minerals Acquisition Corp. and Kinbauri, and that under the amalgamation shareholders of Kinbauri other than Orvana Minerals Acquisition Corp. and any shareholders who exercise statutory dissent rights would be entitled to receive $0.75 per Kinbauri share. However, Orvana has since determined that prior to any amalgamation of Orvana Minerals Acquisition Corp. and Kinbauri, it will complete a compulsory acquisition of the shares of Kinbauri that it does not currently own.
 
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 $98.0 million (C$107.3 million) as at June 30, 2009.

Forward Looking Disclaimer
 
Certain statements contained in this press release concerning objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates 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 expectations, assumptions and projections 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, risks relating to any failure by Orvana to acquire the remaining outstanding shares of Kinbauri that it does not own; 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
    or
    Orvana Minerals Corp.
    Malcolm King
    (416) 369-1629