Augyva Mining Resources Inc.

Augyva Mining Resources Inc.

June 22, 2011 19:11 ET

Augyva Announces Financing Proposal to Niocan Inc. for an Amount of $4 Million

LA MACAZA, QUEBEC--(Marketwire - June 22, 2011) - Augyva Mining Resources Inc. (TSX VENTURE:AUV)(" Augyva ") is pleased to announce that it has submitted today to Niocan Inc. (TSX:NIO)(" Niocan ") a financing proposal whereby Augyva proposes to subscribe for 3,478,260 units (the "Units") of Niocan at a price per Unit of C$1.15, for aggregate gross proceeds to Niocan of C$4,000,000, the whole by way of a private placement financing (the "Proposed Private Placement").

Under the terms of the Proposed Private Placement, each Unit would consist of one (1) common share in the capital of Niocan (a "Common Share") and one-half of one (½) common share purchase warrant (each whole warrant being a "Warrant"). Each Warrant would entitle Augyva to purchase one (1) additional Common Share at an exercise price of C$1.20 per share for an initial period of 12 months from the closing of the Proposed Financing and thereafter at an exercise price of C$1.25 per share for an additional period of 12 months, for a total period of 24 months.

The Proposed Private Placement is be subject to very few conditions. These conditions include the negotiation of a definitive subscription agreement and the entitlement to Augyva, as of the date of closing of the Proposed Private Placement, to have 3 seats out of the 4 seats on the Board of Directors of Niocan. The closing of the Proposed Private Placement is not subject to any due diligence investigation by Augyva.

Commenting, Augyva's President and Chief Executive Officer, Georges-Yvan Gagnon, said: "We sincerely believe that Augyva's financing proposal is a superior proposal than the one contemplated among Niocan and Forbes & Manhattan, Inc. as disclosed by Niocan in a press release dated May 4, 2011. Augyva's proposal is not subject to any significant conditions and no due diligence review from our part shall be required. We are confident to be able to close the financing within a very short period of time should Niocan accept our proposal."

Upon acceptance of Augyva's proposal, the parties must close the financing no later than noon on June 29, 2011.

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

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 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

  • Georges-Yvan Gagnon - P. Geologist
    President and Chief Executive Officer
    819-275-2254 (FAX)