Augyva Mining Resources Inc.
TSX VENTURE : AUV

Augyva Mining Resources Inc.

December 06, 2010 16:23 ET

Augyva announces: Joint Venture Formed with Century and Sandy Chim Steps Down as CEO

MONTREAL, QUEBEC--(Marketwire - Dec. 6, 2010) - Augyva Mining Resources Inc. (TSX VENTURE:AUV) ("Augyva") announces that its joint venture with Canadian Century Iron Ore Corporation ("Century") in respect of the Duncan Lake Property ("DLP" or the "Project") has now been formed.

As announced in the Company's press release of November 11, 2010, Century has completed its funding of $6,000,000 to earn a 51% interest in the Project, in accordance with the option and joint venture agreement entered into between the parties in May 2008. Accordingly, effective December 6, 2010, the parties have formed a joint venture in respect of the Project (Augyva 49% and Century 51%). Augyva will continue to be the Operator of DLP until the funded amount fully utilized for the Project and then Operatorship shall then be transferred according to the Agreement.

Pursuant to the terms of the Agreement:

  • the parties will establish a management committee to oversee the operations of the Joint Venture; Century shall be entitled to three members on the Management Committee and Augyva shall be entitled to two members, with decisions of the Management Committee requiring majority approval;

  • Century will become operator of the Project and assume the responsibility of proposing and, with approval of the Management Committee, implementing exploration programs, construction programs and operating plans in respect of the Project;

  • Century has the option to acquire an additional 14% interest in the Project by incurring exploration, construction and/or operating costs totaling $14,000,000 by the eighth anniversary of the date of the Agreement, or by completing a feasibility report in respect of the Project; If Century funds a lesser amount, it will acquire a lesser additional percentage interest on a pro rata basis;

  • Following Century's acquisition of its additional interest, the parties shall be responsible for their respective portions of the costs of any exploration programs and/or construction programs in accordance with their then percentage interest in the Joint Venture, or be subject to dilution; the Agreement provides for standard dilution provisions and if either Century's or Augyva's interest in the Joint Venture is reduced to 10% or less, its interest shall be converted to a 2% NSR royalty.

Additionally, concurrent with the formation of the Joint Venture, Sandy Chim has tendered his resignation as CEO of Augyva in order for him to focus on the further development of the Project through Century. Mr. Georges-Yvan Gagnon will be assuming the position of CEO in addition to his role as President. Mr. Chim will continue to act as a director and Chairman of the Board of Augyva. 

Mr. Georges-Yvan Gagnon, President of Augyva commented, "We thank Sandy for his contributions as CEO and look forward to his continued input as a director of Augyva as we prepare for the winter exploration program and beyond on the Duncan Lake Iron Ore Project."

Sandy Chim, President of Century commented, "With Century's interest in the now formed Joint Venture, I look forward to advancing the project towards a bankable feasibility report."

About Augyva Mining Resources Inc

Augyva is an exploration and development company with 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. In addition to advancing the DLP, Augyva holds 100% interest on 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.

About Canadian Century Iron Ore Corporation

Century is a subsidiary of Century Iron Ore Holdings Inc., an iron ore property developer and investor with extensive network and relationships in the Far East market, particularly China having substantial investments in iron ore properties in Canada with the vision of building an iron ore resource base for the growing demand for iron ore of the global market driven primarily by China which bought about 70% of the total seaborne iron ore trade in 2009.

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. Neither Augyva or Century 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
    President and CEO
    819-275-1614
    www.augyva.com