logo-loader

Apella Resources updates investors on corporate developments

Published: 16:18 09 Apr 2010 BST

no_picture_pai

Apella Resources Inc (TSX-V: APA, FSE: NWN) said its plan to combine its Quebec vanadium-iron-titanium assets in a wholly owned subsidiary called Power Vanadium - as announced in November - has been set aside, and the asssets will remain within the Apella parent company.  Apella said that it has been very successful in its exploration and development of the projects to date, and it plans to continue with its plans to exploit their potential to derive the greatest shareholder value possible.

The company added that it has been in preliminary discussions with a number of entities, who have shown an interest in participating in the development of the Iron-T project. Apella stated that these are early stage discussions, and it will continue to entertain such propositions.

Currently, while Apella awaits its NI43-101 report on the Iron-T project and its resource calculation, the company is readying its plans for a Phase 3 diamond drill program.

Additionally, the company updated investors in relation to the Lac Dore claims. Previously the Ministere des Resources et de la Faune du Quebec (Quebec Ministry) awarded 9 of the 21 Lac Dore claims staked on August 21 2007 to Apella. Subsequently the company filed its comments on the preliminary decision, proposing that it should be awarded 20 of the 21 claims, including 2 claims awarded to SOQUEM Inc.

In a decision in early 2010, the Quebec Ministry stood by its earlier preliminary decision, Apella duly appealed the ruling within the 30 days requirement.

According to Apella, it has finally reached the point where, after 2½ years, its staking competitor SOQUEM Inc is no longer contesting its own award of only 2 claims, leaving Apella with a good opportunity to argue its merits, uncontested by SOQUEM.

The 9 claims that Apella is slated to receive under the Quebec Ministry's decision to date provide Apella with a majority interest in the key mineralization making up the original Lac Dore Deposit. “Apella's management is well aware that the asset at stake in this matter is the world's second largest Vanadium deposit and feels that the reasons set forth in the decision denying the other 9 claims are not justified”. Apella stated.

Furthermore it said its confident in its position and with the full 18 claims Apella's interest would cover approximately 95-97% of the original Lac Dore Deposit.

Apella said it will continue to focus 100 percent of its vanadium-iron-titanium exploration in pursuit of developing the Iron-T project to the Bankable Feasibility stage.

In a separate statement, Apella announced that it has adopted a ‘Shareholder Rights Plan’ to ensure that all of its shareholders are treated fairly in connection with any take-over bid for the Company and to ensure that the Board of directors is provided with sufficient time to consider and evaluate any unsolicited takeover bid and to explore and develop alternatives to maximize shareholder value.

Apela said the plan is consistent with the company's objective of enhancing value for shareholders. The plan is structured along the same lines as other shareholder rights plans that have been adopted by a number of leading Canadian companies and ratified by the shareholders. It is not in response to any specific initiative by any particular company and is not intended to prevent takeover bids that treat Apella Resources shareholders fairly.

Under the terms of the plan, Apella will issue one right in respect of each outstanding common share at the close of business on April 8 2010, and in respect of each common share issued thereafter.

The rights become effective and exercisable only if a person or a concert party acquires or announces its intention to acquire 20% or more of the shares without complying with permitted bid provisions, or without approval of Apella's board.

Once effective and exercisable, rights holders - other than the acquiring person or related persons - can purchase common shares of the corporation at a substantial discount to the prevailing market price at the time the rights become exercisable.

The Shareholder Rights Plan is subject to the approval of the TSX Venture Exchange and ratification by Apella's shareholders at the April 16 2010 AGM and if ratified, will have a term of three years.  If the plan is not confirmed by shareholders, the plan and all outstanding rights will terminate and be void and of no further force and effect.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

33 minutes ago