Augyva Mining Resources Inc.

Augyva Mining Resources Inc.

June 27, 2011 10:55 ET

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

LA MACAZA, QUEBEC--(Marketwire - June 27, 2011) - Augyva Mining Resources Inc. (TSX VENTURE:AUV) (" Augyva ") has submitted a revised financing proposal to Niocan Inc. (TSX:NIO) (" Niocan "), whereby Augyva proposes to subscribe for 3,076,923 units of Niocan at a price per unit of $1.30, which represents a 22.6% premium to the closing price of Niocan's common shares on the Toronto Stock Exchange on June 24, 2011, for aggregate gross proceeds to Niocan of $4 million, the whole by way of a private placement financing. Under the terms of the revised proposed private placement, each unit would consist of one common share in the capital of Niocan and one-half of one common share purchase warrant. Each whole warrant would entitle Augyva to purchase one additional common share at an exercise price of $1.35 per share for a period of 24 months.

The revised proposed private placement is subject only to the negotiation of a definitive subscription agreement and the approval of the Toronto Stock Exchange. The closing of the proposed private placement is not subject to Niocan shareholder approval or to any due diligence investigation by Augyva.

Commenting, Augyva's president and chief executive officer, Georges-Yvan Gagnon, said: "We still sincerely believe that Augyva's revised superior financing proposal offers a significant premium than the one contemplated among Niocan and Forbes & Manhattan, Inc., as disclosed by Niocan in a press release dated May 4, 2011. Augyva's revised proposal is not subject to any conditions other than the execution of a subscription agreement and regulatory approval, and no due diligence review from our part shall be required. Accordingly, Augyva's revised offer, including the improved pricing, maximizes Niocan shareholder value. 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 sign a definitive subscription agreement no later than June 29, 2011, at noon.

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)