Forbes & Manhattan Coal Corp.
TSX VENTURE : NRU

Forbes & Manhattan Coal Corp.

September 23, 2010 12:18 ET

Forbes & Manhattan Coal Corp. Announces Update on Agnew Lake Properties

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - Forbes & Manhattan Coal Corp. (formerly Nyah Resources Corp.) (TSX VENTURE:NRU) (the "Corporation") announces an update with respect to its previously held Agnew Lake properties located in the Hyman and Porter Townships in Sudbury, Ontario.

The Agnew Lake project consists of two separate exploration properties comprised of the Agnew Lake North Uranium property (the "Agnew Lake North Uranium Property"), which is the most advanced of the two claim blocks, and the Agnew Lake South property (the "Agnew Lake South Property"). The Agnew Lake North Uranium Property consists of seven unpatented mining claims (covering 1,032 ha, or 2,550 acres) located approximately 75 kilometres by road west of Sudbury, Ontario, in Hyman and Porter Townships. These claims encompass the past producing Agnew Lake Uranium Mine which was operated by Kerr Addison Mines Ltd. between 1977 and early 1983 producing approximately 1.9 million pounds of uranium. Three of the claims (850 hectares) are subject to a Federal license under the Nuclear Safety and Control Act. The Agnew Lake South Property consists of four unpatented mining claims (covering 692 hectares, or 1710 acres) located in Hyman Township of the Elliot Lake-Blind River uranium district, Ontario.

In September 2008, the Corporation announced that it had completed Phase III of the 2008 drill program consisting of 11 holes totaling 3,500 metres of NQ diamond drilling on the Agnew Lake North Uranium Property (See Press Release dated September 18, 2008). At this time, the Corporation also completed an aggregate of 62.3 line kilometres of ground geophysics at the Agnew Lake North Uranium Property and the Agnew Lake South Property. With respect to the Agnew Lake South Property, the Company completed magnetic, VLF-EM and IP surveys. Preliminary data with respect to these surveys indicate an antiformal structure with conglomerate units cropping out on the north limb and coincident high radioactivity that suggests conditions for a deposit similar to that found to the north. A follow up radiometric survey confirms the presence of uranium bearing conglomerates close to surface.

As set out in the Corporation's Management Discuss and Analysis for the financial year ended December 31, 2008 (the "MD&A"), during the year ended 2008, total exploration completed by the Corporation included 9,380 metres of drilling from 31 holes on the Agnew Lake North Uranium Property and exploration expenditures incurred on the properties are set out below.

EXPLORATION EXPENDITURES 2008
  Agnew Lake South Uranium Property $   Agnew Lake North Uranium Property $   Total $  
Acquisition Costs            
Balance, beginning of year -   3,750,091   3,750,091  
Acquisition and Property Costs 25,325   863   73,719  
Property write-off (25,325 ) (2,754,204 ) (2,827,060 )
Balance, end of year -   996,750   996,750  
             
Exploration Expenditures            
Balance, beginning of year -   946,192   946,192  
  Consulting and labour 76,050   134,539   213,339  
  Assaying 287   27,637   27,924  
  Drilling -   653,687   653,687  
  Surveys 46,586   65,936   112,522  
  Travel and truck rental 5,632   24,774   31,118  
  Field expenses and office support 4,692   20,091   25,498  
  Amortization -   2,102   2,102  
  133,247   1,874,958   2,012,382  
  Property write-off (133,247 ) (1,874,958 ) (2,012,382 )
  Balance, end of year -   -   -  
             
Total Deferred costs, end of year -   996,750   996,750  
             

Upon further review of the results from the Phase III drill program on the Agnew Lake North Uranium Property and the geophysics of both properties, as set out in the MD&A, taking into consideration the global collapse of the equity markets and the corresponding falling price of uranium at such time, the Corporation determined such results did not warrant further exploration work to be conducted with respect to the Agnew Lake North Uranium Property and decided not to proceed with any recommended work on the Agnew Lake South Property.

In February, 2009 the Corporation announced that it had entered into a letter agreement with Russo-Forest Corporation ("Russo-Forest") (See Press Release dated February 2, 2009) to acquire all of the issued and outstanding common shares of Russo-Forest (the "Change of Business Transaction"). In accordance with the proposed terms of the Change of Business Transaction, the Corporation entered into an agreement with Pitchblack Resources Ltd. ("Pitchblack") (formerly Cash Minerals Ltd.) whereby Pitchblack agreed to acquire the Agnew Lake properties in consideration for an aggregate of 15,000,000 common shares of Pitchblack and 7,500,000 share purchase warrants of Pitchblack. On December 18, 2009, the Corporation announced that it had decided not to proceed with the Change of Business Transaction which included the proposed sale of the Agnew Lake properties to Pitchblack.

On July 7, 2010 the Corporation announced that it had entered into a letter agreement with Forbes & Manhattan (Coal) Inc. ("Forbes Coal") to acquire all of the issued and outstanding common shares of Forbes Coal. On September 20, 2010 the Corporation announced that it had completed the business combination with Forbes Coal (the "Business Combination"). In connection with the Business Combination, the Corporation also announced that it had completed the sale of its Agnew Lake properties to Valencia Ventures Inc. ("Valencia") in consideration of a cash payment of $500,000 and two additional payments valued at $500,000 in cash or common shares of Valencia, at the election of Valencia. The sale of the Agnew Lake properties constitutes a non-arm's length transaction for the purposes of the TSX Venture Exchange as Nyah and Valencia have common directors and officers.

Since completion of the Phase III drill program in 2008, as set out in the MD&A, the Corporation has not conducted any additional material exploration work on the Agnew Lake properties. During the month of September 2010, the Corporation performed additional prospecting, mapping and radiation surveys on the Agnew Lake South Property. The cost of such work was approximately $15,000 and was conducted in order to maintain the property in good standing. Samples have been sent to ALS Chemex and results are expected within a month.

David Gower, P. Geo., is a Qualified Person under NI 43-101 and has reviewed and approved the technical and scientific information in this press release.

About the Corporation 

The Corporation holds a 53.5% interest in Slater Coal (Pty) Ltd., a South African Corporation ("Slater Coal") which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in certain coal mines in South Africa (the "Slater Coal Properties"). The Slater Coal Properties comprise the operating Magdelena bituminous mine (the "Magdelena Property") and the Aviemore anthracite mine (the "Aviemore Property") and have a substantial resource base of bituminous and anthracite coal. The Slater Coal Properties are located in the Klipriver coalfield, near Dundee, in the KwaZulu Natal Province of South Africa and can be accessed via the N3, N11 Ladysmith and R102 Dundee tarred national highways that run between Johannesburg and Durban, South Africa.

Cautionary Note Regarding Forward-Looking Information This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Corporation and its projects, statements regarding the prospects for the business of the Corporation, statements regarding synergies and financial impact of the proposed transaction, the terms and conditions of the transaction, the benefits of the proposed transaction, the costs of and capital for harvesting projects, harvesting expenditures, timing of future acquisitions of additional properties and applicable licences, requirements for additional capital, government regulation of the mineral exploration industry, environmental risks, acquisition of mining licences, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER THE 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

  • Forbes & Manhattan Coal Corp.
    Stephan Theron
    President and Chief Executive Officer
    (416) 861-5912
    stheron@forbescoal.com