Oban Mining Corporation

Oban Mining Corporation
NioGold Mining Corporation

NioGold Mining Corporation

February 23, 2016 11:53 ET

Proxy Advisory Firms Recommend that Shareholders of Oban and NioGold Vote FOR the Business Combination

Shareholders Reminder to Vote Prior to March 2, 2016 (proxy submission deadline)

TORONTO, ONTARIO--(Marketwired - Feb. 23, 2016) - Oban Mining Corporation (TSX:OBM) ("Oban") and NioGold Mining Corporation (TSX VENTURE:NOX) ("NioGold") are pleased to announce that two leading independent proxy advisory firms that provide voting recommendations to institutional investors (being Institutional Shareholder Services Inc. ("ISS") and Glass Lewis & Co. ("Glass Lewis"), have each recommended that shareholders approve the proposed business combination of Oban and NioGold pursuant to which Oban will, among other things, acquire all of the issued and outstanding common shares of NioGold by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement").

Recommendation to NioGold Shareholders

ISS has recommended that shareholders of NioGold vote FOR the special resolution to approve the proposed Arrangement stating that, "In light of the significant implied premium and the reasonable strategic rationale, shareholder approval of this resolution is warranted."

Recommendation to Oban Shareholders

The leading independent proxy advisory firms, ISS and Glass Lewis, have recommended that shareholders of Oban vote FOR the ordinary resolutions to approve the issuance of common shares of Oban in connection with the Arrangement and the private placement of 10,521,700 subscription receipts of Oban sold on a "best efforts" private placement basis on February 3, 2016 (the "Share Issuance Resolution"). Specifically, Glass Lewis confirms that, "the all-stock consideration and concurrent placement stand to not only preserve Oban's existing cash balance, but, in fact, expand the combined firm's liquidity and position Oban to independently pursue further exploration and development with greater certainty in the near to medium term. Based on these factors and the unanimous support of the board, we believe shareholders should support the NioGold arrangement."

Additional information concerning the Arrangement and the Share Issuance Resolution among other matters, can be found in the joint management information circular of Oban and NioGold dated February 3, 2016 (the "Circular"). An electronic copy of the Circular is available on Oban's website at www.obanmining.com and on NioGold's website www.niogold.com. The Circular is also available on SEDAR under the issuer profiles of both companies at www.sedar.com.

NioGold Meeting

The special meeting of shareholder of NioGold is scheduled to be held at 10:00 a.m. (Eastern Standard Time) on Friday March 4, 2016 at the offices of Bennett Jones LLP, Suite 3400, One First Canadian Place, Toronto, Ontario, Canada, M5X 1A4.

Oban Meeting

The special meeting of shareholder of Oban is scheduled to be held at 11:00 a.m. (Eastern Standard Time) on Friday March 4, 2016 at the offices of Bennett Jones LLP, Suite 3400, One First Canadian Place, Toronto, Ontario, Canada, M5X 1A4.

Proxy Submission Deadlines

  • NioGold Shareholders: 10:00 a.m. (EST) on Wednesday March 2, 2016.

  • Oban Shareholders: 11:00 a.m. (EST) on Wednesday March 2, 2016.

Shareholder Questions

Shareholders who have questions or require assistance with voting may contact the proxy solicitation agent of Oban and NioGold, Laurel Hill Advisory Group, at:

North America Toll Free: 1-877-452-7184
Collect Calls Outside North America: 416-304-0211
Email: assistance@laurelhill.com

The Board of Directors of Oban and NioGold UNANIMOUSLY recommend that Shareholders vote IN FAVOUR of the Arrangement

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein.

Contact Information

  • Oban Mining Corporation
    John Burzynski
    President & Chief Executive Officer
    (416) 848-9504

    NioGold Mining Corporation
    Robert Wares
    President & Chief Executive Officer
    (604) 856-9887