TORONTO, ONTARIO–(Marketwired – April 14, 2014) – Oban Mining Corporation
(TSX:BVL) (the “Company”) (formerly Braeval Mining Corporation (“Braeval”)) is
pleased to announce that it has completed its previously announced business
combination (the “Business Combination”) pursuant to a business combination
agreement (the “Business Combination Agreement”) dated February 21, 2014 between
the Braeval, Oban Exploration Limited (“Oban”) and a wholly-owned subsidiary of
the Company. The Business Combination was effected by way of a three-cornered
amalgamation, whereby Oban amalgamated with a wholly-owned subsidiary of the
Company, resulting in the Company acquiring all of Oban’s assets.
“We are extremely appreciative of the strong support we received from our
shareholders in completing the Business Combination,” said Jose Vizquerra,
President & CEO of the Company. “We look forward to pursuing a systematic
and aggressive exploration program and continuing to build shareholder value.”
In connection with the completion of the Business Combination, the Company
amended its articles to consolidate its common shares on the basis of one
post-consolidation share for every 3.14 pre-consolidation shares and change its
name to “Oban Mining Corporation”. The common shares of the Company have been
conditionally approved to trade on the Toronto Stock Exchange (“TSX”) and it is
expected that the common shares will commence trading on a consolidated basis
under the new symbol “OBM” on or about April 22, 2014.
Under the Business Combination, the holders of the common shares of Oban
received 0.914 of a common share of the Company (on a post-consolidation basis)
for each common share of Oban so held. Upon completion of the Business
Combination, including the consolidation, the Company had 99,881,563 common
shares issued and outstanding on an undiluted basis, approximately 70% of which
are held by former shareholders of Oban and approximately 30% of which are held
by former shareholders of Braeval.
The Company will be led by the pre-closing Braeval management team. In
addition, the Company’s board has been set at six and is comprised of the five
members of the pre-closing Braeval board of directors, along with newly-elected
director, Bernardo Calderon, who served as a director of Oban.
The Business Combination was subject to certain shareholder approvals, each
of which was received by Braeval and Oban at their respective meetings of
shareholders, that were both held on April 10, 2014.
The Business Combination is expected to provide significant benefits for
shareholders, including the pooling of cash and mineral resources and
significant synergies in exploration and development, greater market presence,
enhanced liquidity, capital market profile and financial strength in challenging
times, operating efficiencies leading to significant cost reductions, and a
strong position from which to participate in the anticipated future
consolidation in the mining industry.
About Oban Mining Corporation
The Company is a mineral exploration company focused on the acquisition,
exploration, and development of base metal resource properties in the Americas.
The Company is actively engaged in the identification, acquisition, evaluation
and exploration of mineral properties, and holds options to acquire a 100%
interest in four mining concessions covering a total surface area of 1,200
hectares comprising the Marcahui project, twenty-four mining concessions
covering a total surface area of 16,700 hectares comprising the Antamayo
project, and options to acquire an interest on the Arcopunco, all of which are
in Peru. Oban Mining is exploring these properties for precious metal deposits
including gold, silver and copper. The Marcahui project and the Antamayo project
are the Company’s primary assets. The Company also holds various interests in
properties located in Peru including the Chosicano project, Bermejo project,
Cevichito project, Magdalena property and other grass root projects (approx.
50,000 ha).
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning
of the applicable Canadian securities legislation that is based on expectations,
estimates and projections as at the date of this news release. The information
in this news release about the anticipated impact of the Business Combination
may have on the operations of the Company, as well as the benefits expected to
result from the Business Combination are forward-looking information. Other
forward-looking information includes but is not limited to information
concerning: the intentions, plans and future actions of the Company; operating
efficiencies, synergies in exploration and development and increased liquidity
resulting from the Business Combination; operating or technical difficulties in
connection with exploration or development activities; and other information
that is not historical facts.
Any statements that involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions, future
events or performance (often but not always using phrases such as “expects”, or
“does not expect”, “is expected”, “anticipates” or “does not anticipate”,
“plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or
“intends” or variations of such words and phrases or stating that certain
actions, events or results “may” or “could”, “would”, “might” or “will” be taken
to occur or be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify forward-looking
information.
This forward-looking information is based on reasonable assumptions and
estimates of management of the Company, at the time it was made involves known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among others, risks that
final acceptance of the TSX relating to the listing of the common shares of the
Company being received; global economic climate; dilution; ability to complete
acquisitions; environmental risks; and community and non-governmental actions.
Although the forward-looking information contained in this news release is based
upon what management believes, or believed at the time, to be reasonable
assumptions, the Company cannot assure shareholders and prospective purchasers
that actual results will be consistent with such forward-looking information, as
there may be other factors that cause results not to be as anticipated,
estimated or intended, and neither the Company nor any other person assumes
responsibility for the accuracy and completeness of any such forward-looking
information. The Company does not undertake, and assumes no obligation, to
update or revise any such forward-looking statements or forward-looking
information contained herein to reflect new events or circumstances, except as
may be required by law.
Oban Mining Corporation
Jose Vizquerra
President & CEO
416-848-9504
