Augyva Mining Resources Inc.
TSX VENTURE : AUV

Augyva Mining Resources Inc.

March 30, 2011 14:21 ET

Augyva Announces Closing of C$8,000,000 Private Placement

LA MACAZA, QUEBEC--(Marketwire - March 30, 2011) - Augyva Mining Resources Inc. (TSX VENTURE:AUV) (« Augyva ») is pleased to announce the closing of the bought deal private placement financing led by Haywood Securities Inc. (the «Underwriter»), previously announced by news release dated March 14, 2011, for total gross proceeds of C$6,947,500 (the «Private Placement»).

Under the terms of the Private Placement, Augyva issued a total of 13,895,000 units (the «Units») at a price of C$0.50 per Unit. Each Unit consisted of one (1) common share in the capital of Augyva (a «Common Share») and one-half of one (½) common share purchase warrant (each whole warrant being a «Warrant»). Each Warrant entitles the holder thereof to purchase one (1) additional Common Share at an exercise price of C$0.70 per share for a period of twenty-four (24) months following the closing of the Private Placement.

Under the Private Placement, Augyva paid the Underwriter a cash commission of C$547,362.50 and also issued to the Underwriter a total of 1,119,930 compensation options (the «Compensation Options»). Each Compensation Option entitles its holder thereof to purchase one (1) Unit, exercisable at a price of C$0.50 per Unit for a period of twenty-four (24) months following the closing of the Private Placement.

The securities issued under the Private Placement will be subject to a four-month and one-day hold period, expiring July 31, 2011.

Concurrent with the Private Placement, Augyva completed a non-brokered private placement of 2,105,000 Units for gross proceeds to Augyva of C$1,052,500. Augyva paid finders fees of C$52,625 in connection with the non-brokered private placement.

The net proceeds of the Private Placement will be used primarily to advance the exploration and development of the Duncan Lake Property and for working capital and general corporate purposes. If Augyva proceeds with its announced intention to pursue an acquisition of Niocan Inc., and any such acquisition is successful, Augyva may also use a portion of the net proceeds of the Private Placement for the exploration and development of Niocan's Great Whale Iron Property and up to 20% of the net proceeds of the Private Placement to develop niobium projects.

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.

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.

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.

Contact Information

  • Augyva Mining Resources Inc.
    Georges-Yvan Gagnon - P. Geologist
    President and Chief Executive Officer
    819-275-1614
    819-275-2254 (FAX)
    www.augyva.com