URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

February 02, 2011 15:57 ET

URSA Major Minerals Requests Inspiration Mining Provide Proposed Director Nominees and Calls Off Special Meeting of Shareholders

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES.

URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ) had scheduled a special meeting of shareholders for March 3, 2011, in response to a requisition for a shareholder meeting received from Inspiration Mining Corporation ("ISM") dated October 29, 2010. ISM requisitioned the meeting for the purpose of "the election of a board of directors as proposed by [ISM]".

Despite numerous requests from URSA Major's management and legal counsel, ISM has refused to provide proposed nominations for the board of directors of URSA Major. URSA Major further notes that the ISM requisition has no business plan with regards to managing URSA Major's operations at the Shakespeare Nickel-Copper Mine or to advance URSA Major's current exploration program.

As a result of ISM's failure to provide proposed nominees to the board of directors of URSA Major, URSA Major will not be holding a shareholders' meeting on March 3, 2011 as URSA Major cannot adequately notify shareholders of the business to be conducted at the meeting unless shareholders are advised as to the names of Inspiration's proposed nominees. URSA Major has cancelled the special meeting of shareholders to only be re-established at such time as URSA Major is in receipt of information from ISM as to its nominee directors.

ISM has delivered a notice of application to URSA Major advising that ISM will be bringing an application in the Ontario Superior Court of Justice (Commercial List) under sections 106(i) and 248 of the Business Corporations Act, Ontario seeking a declaration that the private placement that closed on January 31, 2011 be reversed. URSA Major intends to vigorously defend its position.

URSA Major intends to use the proceeds raised from its private placement of January 31, 2011 to accelerate its current exploration program at the Shakespeare nickel-copper deposit, Nickel Offsets property and other Ontario properties.

URSA Major believes that ISM is a 16.5% shareholder in URSA Major (based on the number of issued and outstanding shares of URSA Major after completion of the Offering on January 31, 2011).

About URSA Major Minerals Incorporated

URSA Major is a Canadian mining company with two nickel sulphide projects containing significant NI43-101 compliant nickel and copper reserves and resources. The Company is focused on maintaining profitable operations at the Shakespeare Mine and growing its nickel, copper and platinum group metal (PGM) deposits through exploration and development, primarily in Ontario, Canada.

This release was prepared by management of the Company who takes full responsibility for its contents. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • URSA Major Minerals Incorporated
    Dr. Richard Sutcliffe
    President & CEO
    416-864-0615
    or
    URSA Major Minerals Incorporated
    Alison Tullis
    Investor Relations Manager
    416-864-0615
    atullis@bellnet.ca
    www.ursamajorminerals.com