Kinbauri Gold Corp.
TSX VENTURE : KNB
FRANKFURT : 3KG.DE

Kinbauri Gold Corp.

June 11, 2009 09:31 ET

Kinbauri Gold Provides Update on Glen Eagle Transaction

Board Continues to Implement Strategy to Maximize Shareholder Value

OTTAWA, ONTARIO--(Marketwire - June 11, 2009) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) today announced that the transaction with Glen Eagle Resources Inc. (TSX VENTURE:GER) ("Glen Eagle") to invest C$32 million in return for a 45% interest in Kinbauri Espana has been formally terminated by both parties.

"This event has not changed the Board's unwavering commitment to review options to maximize shareholder value," said Brian McEwen, Director and Special Committee Member. "We are in the process of engaging a financial advisor to assist in evaluating strategic options and, with market conditions now much stronger than during the original strategic review, we believe that many more opportunities will be available. We are confident that our efforts will result in a much stronger and more favourable outcome than the current bid of $0.55 per share from Orvana Minerals."

Glen Eagle has advised that it may pursue a claim for damages against Kinbauri. Kinbauri takes the position that no damages are payable to Glen Eagle and, in fact, is considering its options to pursue Glen Eagle for damages. Kinbauri is continuing with its Court Application scheduled for June 17, 2009 against Glen Eagle now only to seek a declaration that it had lawfully brought to an end the transaction by accepting Glen Eagle's repudiation of the Subscription Agreement. (See Press Release dated June 9, 2009)

On June 9, 2009, Kinbauri's Board of Directors unanimously recommended that Kinbauri shareholders REJECT the unsolicited offer to purchase all of the outstanding Kinbauri shares made by Orvana Minerals Corporation (TSX:ORV) ("Orvana") as described in a take-over bid circular dated May 25, 2009.

Shareholders do not have to take any action on the Orvana offer and the Kinbauri Board urges you to reject it.

For assistance in withdrawing any shares already tendered, or other questions, please contact Laurel Hill Advisory Group, the Information Agent retained by Kinbauri in connection with the Orvana Offer, toll free at 1-888-812-9184 from anywhere in Canada or the United States and collect at 416-637-4661 from outside North America.

About Kinbauri

Kinbauri (TSX VENTURE:KNB) is a mineral exploration company focused on the development of precious metal prospects in Spain, Nevada and Canada. Its immediate focus is to begin operations at its El Valle/Carles property in Asturias, northwestern Spain in 2010. It currently has 59,348,051 common shares issued and outstanding. For more information visit www.kinbaurimaximized.com or www.kinbauri-gold.com.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Kinbauri Gold Corp.
    Mr. Brian McEwen
    Director, Special Committee member
    (613) 836-2594
    (613) 831-2730 (FAX)
    bmcewen@kinbauri-gold.com
    or
    Europe
    INVESTEL
    Ruediger (Rudy) Hnyk, CEO
    Investor Relations & Telecommunications
    ceo@investel.de