Aurvista Gold Corporation

Aurvista Gold Corporation

August 09, 2011 12:59 ET

Aurvista Gold Corporation Closes $4,100,600 Initial Public Offering

MONTREAL, QUEBEC--(Marketwire - Aug. 9, 2011) -


Aurvista Gold Corporation (the "Corporation" or "Aurvista") (TSX VENTURE:AVA) is pleased to announce that it has completed the acquisition of a 100% interest in the Douay Property and its initial public offering (the "Offering"). Pursuant to the Offering, the Corporation issued an aggregate of 1,973,100 units at a price of $1.00 per unit, each unit being comprised of one common share and one-half of one common share purchase warrant, and 2,127,500 common shares that qualify as "flow-through shares" as defined in subsection 66(15) of the Income Tax Act (Canada) at a price of $1.00 per flow-through common share (collectively, the "Securities"), for total gross proceeds of $4,100,600. The Securities were qualified for distribution pursuant to the final prospectus of the Corporation dated July 29, 2011 (the "Prospectus"), filed in each of the provinces of Canada, excluding Prince Edward Island and Newfoundland and Labrador. The Offering was completed through a syndicate of agents led by NCP Northland Capital Partners Inc. and including National Bank Financial Inc. and Portfolio Strategies Securities Inc. (collectively, the "Agents").

In connection with the Offering, the Corporation paid the Agents a $176,036 cash commission along with 176,036 common share purchase warrants, each such compensation warrant entitling the holder thereof to acquire one common share of the Corporation at a price of $1.00 until February 9, 2013. The Corporation also granted the Agents an over-allotment option (the "Over-Allotment Option") entitling the Agents to acquire up to an additional 300,000 common shares at an exercise price of $0.955 per common share and/or up to an additional 150,000 warrants at a price of $0.09 per whole warrant. The Over-Allotment Option may be exercised by the Agents on or prior to September 9, 2011.

The net proceeds from the Offering will be used to fund the Corporation's exploration program, operating expenses and unallocated working capital, which may be used for the acquisition of additional mineral properties.

The Corporation is pleased to announce that the common shares of the Corporation commenced trading today on the TSX Venture Exchange under the symbol "AVA".

Furthermore, concurrently with the closing of the Offering, the Corporation acquired the remaining 50% interest (the "Mineral Claims") in respect of blocks of claims located on the area of land referred to as the Douay Property and located 50 km southwest of Matagami and 120 km north of Amos, in Abitibi, in the Douay township of Quebec consisting of 216 contiguous online staked claims and two physically-staked claims totalling approximately 11,440 hectares (other than a 10% undivided interest in two claims located on the Douay West Zone, as further described in the Prospectus - the "Excluded Interest") previously held by Société d'Exploration Minière Vior inc. ("Vior"), through the issue to Vior of 21,250,000 common shares of the Corporation, which results in the Corporation now owning a 100% interest in the Mineral Claims (other than the Excluded Interest).

Guy Brunet, President and Chief Executive Officer of Aurvista, commented: "The Corporation is happy with the completed financing. We thank our investors for their trust and confidence in the Aurvista team, as reflected in the positive response to the Offering. These funds will allow the Corporation to move forward and it is now in a solid position to carry on its exploration program."

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or the securities laws of any state or jurisdiction within the United States. Accordingly, these securities may not be offered or sold within the United States except in transactions exempt from the registration requirements of the 1933 Act and applicable state laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby within the United States of America unless it is accompanied by appropriate additional disclosure, and in such case subject to all applicable United States securities laws.

About Aurvista Gold Corporation

Aurvista's principal asset is the 100% owned Douay Property, consisting of 216 contiguous online staked claims and two physically-staked claims totalling approximately 11,440 hectares (other than a 10% undivided interest in two claims located on the Douay West Zone) as further described in the Prospectus. Concurrent with the closing of the Offering, Aurvista acquired the remaining 50% of the Douay Property in an all-share transaction with Vior.

The current classified resources of the Douay mineral deposits (all zones, excluding Douay West) reported in the technical report dated March 15, 2011 prepared for the Corporation in accordance with NI 43-101 entitled, "Resource Update of the Douay Property and Preliminary Economic Assessment of the Douay West Mineral Deposit, Northern Abitibi, Quebec" are compliant with standards as outlined in the NI 43-101. These resources were estimated using different cut-off grades of 0.7 and 3.0 g/t Au. The selected cut-off of 0.7 g/t Au was retained in order to outline the mineral potential of high tonnage, low grade deposits such as the Adam_92-7 Porphyry deposit and the Central Porphyry deposit. The total classified resources are 905,000 tonnes at 1.70 g/t Au (49,000 ounces of gold) in the measured and indicated categories, using the selected cut-off of 0.7 g/t Au. There are an additional 42,644,000 tonnes at 1.29 g/t Au (1,762,000 ounces of gold) in the inferred category. The selected cut-off of 0.7g/t Au was retained in order to outline the mineral potential of high tonnage, low grade deposits. The current resources of the Douay West mineral deposit (excluding Douay mineralized deposits) were calculated using a cut-off of 4.0 g/t Au and total classified resources are 313,000 tonnes in the measured and indicated categories at a 7.75 g/t Au (77,992 ounces of gold) and an additional 267,000 tonnes in the inferred category at a grade of 8.53 g/t Au (73,187 ounces of gold). The technical report with respect to the Douay Property recommends the continuation of exploration and development work on specific parts which show potential for a high tonnage, low grade deposit. The technical content of this press release with respect to mineral deposit estimates has been approved by Maxime Dupéré, P.Geo., one of the authors of the technical report, who is also a "Qualified Person" under NI 43-101 and considered an "Independent Qualified Person".

Forward-Looking Information

This press release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of the Corporation, including, without limitation, those listed under the headings "Special Note Regarding Forward-Looking Statements" and "Risk Factors" in the Corporation's final long form prospectus. Forward-looking information in this press release includes, but is not limited to, information concerning the proposed use of the proceeds of the Offering. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this press release and, other than as required by applicable securities laws, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

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