Orvana Minerals Corp.

Orvana Minerals Corp.

May 15, 2009 16:30 ET

Orvana to Apply to OSC for Relief Relating to Kinbauri's Recent Actions

TORONTO, ONTARIO--(Marketwire - May 15, 2009) - Orvana Minerals Corp. (TSX:ORV) today announced its intention to apply to the Ontario Securities Commission for relief relating to recent actions by Kinbauri Gold Corp.'s board of directors. Orvana believes that these actions are improper tactics in response to Orvana's proposed all cash offer of C$0.55 per share for all of the outstanding shares of Kinbauri.

Orvana believes that Kinbauri's entry into a definitive agreement with respect to its proposed transaction with Glen Eagle Resources Inc. and its proposed issuance of units (consisting of 6,000,000 shares and 3,000,000 warrants) are actions that frustrate an open take-over bid process.

Orvana intends to mail its take-over bid circular to Kinbauri shareholders on or before May 25, 2009.

Orvana is a well-established mine operator with an experienced management team that has collectively brought a number of underground mines into production. Orvana had cash of approximately US$96.6 million (C$113.3 million) as of December 31, 2008 which is sufficient to develop Kinbauri's Spanish mineral project.

Forward-looking disclaimer

This press release contains only summary information about Orvana's offer and does not constitute an offer to purchase any securities. Complete information about the offer will be available by referring to the offer to purchase and take-over bid circular to be filed with Canadian securities regulators. Certain statements contained in this press release concerning Orvana's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of Kinbauri and Glen Eagle are forward-looking statements. The words "believe", "expect", "intend", "may", "anticipate", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are not based on historical facts, but rather on current expectations, assumptions and projections about future events. While Orvana considers these factors and assumptions to be reasonable based on information currently available, they may be proven to be incorrect. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to, the offer not being commenced; any of the terms and conditions of the offer not being satisfied; general economic conditions; dependence on key personnel; and variations in required capital expenditures. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Contact Information

  • Investors:
    Orvana Minerals Corp.
    Malcolm King
    Longview Communications
    Louise Kozier
    Longview Communications
    Alan Bayless