Orbite Aluminae Inc.
TSX : ORT

Orbite Aluminae Inc.

February 27, 2012 07:00 ET

Orbite Aluminae Disclosure Update

MONTREAL, QUEBEC--(Marketwire - Feb. 27, 2012) - As previously disclosed in its press releases issued February 10, 13 and 16, 2012, Orbite Aluminae Inc. (the "Company") (TSX:ORT) was informed by representatives of the Autorité des marchés financiers ("AMF") of the AMF's view that the Preliminary Economic Assessment Technical Report (scoping study) issued on January 12, 2012 (the "January 2012 PEA") does not fully comply with the requirements of Regulation 43-101 respecting Standards of Disclosure for Mineral Projects (Québec) ("NI 43-101"). The AMF had given the Company until February 24, 2012 to file a revised version of the January 2012 PEA (the "Revised Report") which would fully satisfy the requirements imposed by the AMF, including that, at a minimum, an additional independent Qualified Person (within the meaning of NI 43-101), co-sign sections 7 to 14 of the Revised Report. The AMF subsequently required that an additional Qualified Person associated with a reputable engineering firm acceptable to the AMF be added. Notwithstanding making good faith efforts, the Company could not deliver a Revised Report in accordance with the AMF requirements within the required timeframe, i.e. by February 24, 2012.

Agreement in Principle

Discussions with the representatives of the AMF resulted in an agreement in principle (the "Agreement in Principle") pursuant to which:

  1. the Company will have an independent audit performed in respect of sections 7 to 14 of the January 2012 PEA. The audit will be conducted and completed as soon as practicable;
  1. the Company will mandate independent Qualified Persons to prepare and file a new NI 43-101 compliant Technical Report;
  1. a draft order (the "Order") will be submitted to the Bureau de décision et de révision (Board of decision and review) ("BDR") on Tuesday, February 28, 2012 ordering a cease trade with respect to the Company's securities pending the filing of a NI 43-101 compliant Revised Report. Notwithstanding the foregoing, upon completion of an audit report, the Company will be entitled to request from the BDR that the Order be lifted.

Cease Trading

The trading of the securities of the Company was temporarily halted on February 23, 2012 pending further news as representatives of the Company and of the AMF were in discussions in connection with the foregoing.

After the AMF and the Company agreed to the terms of the Agreement in Principle, the BDR issued an interim cease trade order on Friday, February 24, 2012 with respect to the securities of the Company, which is to remain in force until the confirmation of the Order by the BDR.

The Company will provide further updates as required.

The Company pursues its game plan

In addition to the implementation of the Agreement in Principle, the Company is pursuing its growth objectives for 2012. Its operations are continuing in line with its business plan. The milestones achieved to date are a demonstration of the Company's commitment to meet expectations.

About Orbite

Orbite owns 100% of the mining rights on a Grande-Vallée property of approximately 6 441 hectares, the site of an aluminous clay deposit located 23 km south of Grande-Vallée, and a 2 600 m2 full scale pilot plant in Cap Chat, in the Gaspé region. An NI 43-101 report issued in August 2011, identified an Indicated Resource of about one billion tonnes of aluminous clay in part of the deposit containing a series of mineral elements. The Company also owns the intellectual property rights to a unique Canada- and U.S.-patented process for extracting alumina from various types of aluminous ores and for which patents are also pending in other countries. www.orbitealuminae.com

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on November 14, 2011 on SEDAR, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

Contact Information

  • MEDIA
    Frederic Berard
    H+K Strategies
    514-395-0375, ext. 259

    Jacques Bedard
    CFO
    Orbite Aluminae Inc.
    514-744-6264

    INVESTORS
    Louis Morin
    Investor Relations
    514-591-3988

    Jason Monaco
    Managing Partner
    First Canadian Capital Corp.
    416-742-5600

    Nicole Blanchard
    Investor Relations
    Sun International Communications
    450-973-6600