Augyva Mining Resources Inc.
TSX VENTURE : AUV

Augyva Mining Resources Inc.

May 06, 2011 09:48 ET

Augyva Mining Resources Inc. Announces the Withdrawal of its Intention to Acquire Niocan Inc.

LA MACAZA, QUEBEC--(Marketwire - May 6, 2011) - Augyva Mining Resources Inc. (TSX VENTURE:AUV) (« Augyva ») previously announced on January 12 and 13, 2011 that it had the intention to make an offer to acquire all of the issued and outstanding common shares of Niocan Inc. (TSX:NIO) (« Niocan ») in exchange of one and a half (1.5) common share of Augyva and a cash payment of ten cents (C$0.10) for each common share of Niocan, the whole by way of a formal take-over bid (the « Offer »).

Niocan announced on May 4, 2011 that it has entered into a binding letter of intent with Forbes & Manhattan, Inc. pursuant to which Forbes & Manhattan, Inc., its affiliates and/or assigns would provide Niocan with the lead order for a private placement of 5,157,000 common shares of Niocan at a price of $1.15 per share. Niocan has agreed to a 16 day exclusivity period ending on May 20, 2011 (the « Exclusivity Period ») to allow the completion of due diligence and the negotiation of a definitive subscription agreement. During the Exclusivity Period Niocan shall not be permitted to discuss, negotiate or solicit competing financing transactions or the sale of Niocan's assets with any other person.

In light of such announcement, Augyva announced today its decision to withdraw its intention to make an offer to acquire all of the issued and outstanding common shares of Niocan. Consequently, Augyva shall not pursue the contemplated Offer. Given the Exclusivity Period, the private placement contemplated by Niocan can be considered as defensive tactics taken by Niocan in response to Augyva's intention to make the Offer and may have the effect of denying Niocan shareholders the ability to make a fully informed decision on the Offer.

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 iron ore 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 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 in four (4) other 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 does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any of the securities of Niocan. Such an offer can only be made pursuant to an offer to purchase and accompanying offering circular filed with the securities regulatory authorities in Canada.

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

    HKDP Communications and Public Affairs
    Frederic Berard, Attorney
    Vice President
    514-395-0375, ext. 259