May 6, 2011 / 3:37 PM / 7 years ago

UPDATE 1-Augyva Mining says not to bid for Niocan

May 6 (Reuters) - Canada’s Augyva Mining Resources Inc said on Friday it will not make an offer to buy Niocan Inc , two days after its smaller peer signed an agreement with merchant bank Forbes & Manhattan for a private placement.

Augyva Mining said that Niocan’s private placement could be considered a defensive tactic in response to its intention to make an offer, it said in a statement.

In January, Augyva, which owns gold and base metal properties, had proposed to buy all of Niocan’s shares for cash or stock, or both, but has not yet made a formal offer.[ID:nASA01DGG]

On Wednesday, Forbes & Manhattan agreed to provide Niocan with the lead order for a private placement of 5.2 million shares of the rare earth mineral explorer for C$1.15 apiece.

The placement for a fourth of Niocan’s outstanding shares, is subject to a 16-day exclusivity period during which the company is barred from discussing or negotiating with any other party.

In March, Niocan’s largest shareholder, Nio-Metals Holdings LLC, also withdrew its offer to buy the company after disagreements over the valuation. [ID:nL3E7E419O]

Augyva Mining’s shares, which were halted earlier in the day, were trading up 3.5 percent at 59 Canadian cents on the Toronto Venture Exchange.

Niocan’s shares, which have gained 8 percent since Nio-Metals withdrew its offer, were down 3.5 percent at C$1.09 on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Prem Udayabhanu)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below