Fall 2011
7
www.nuinsco.ca
Cameron Gold Project
ASX:CVY
Coventry
Victory
Equity Holdings Offer Ability to Finance Exploration
While Minimizing Shareholder Dilution
Grade
Gold
Category
Tonnes
(g/t gold)
(Ounces)
Indicated 4,164,000 3.16 422,353
Inferred 7,148,000 2.54 583,480
Source: Coventry Resources Limited, 1.5 g/t Au cutoff
In announcing the sale, René Galipeau, Vice-
Chairman and CEO, stated that the transaction
places Nuinsco “in a strong position with the
Equity holdings can be
sold in the market and
royalties can also be
monetized to generate the
cash to fnance operations
and exploration activities
without issuing additional
shares in Nuinsco.
•
Strategic Investments
•
Toronto, Ontario, Canada
- Without operating
mines, mineral exploration companies typically
fnance their exploration activities through equity
fnancings. Given its wealth of assets, Nuinsco is
in the fortunate position of having the alternative
to minimize fnancing dilution to shareholders by
crystallizing the value of certain projects by selling
or spinning them off for cash, equity, royalties
or a combination of these. At the opportune time,
these equity holdings can be sold in the market
and royalties can also be monetized to generate
the cash to fnance operations and exploration
activities without issuing additional shares in
Nuinsco.
In line with this strategy, Nuinsco currently holds
common shares in two publicly traded companies:
Coventry Resources Limited (ASX:CVY) and
Victory Nickel Inc. (TSX:Ni). These holdings give
Nuinsco non-dilutive fnancing alternatives that
other exploration companies don’t have.
Coventry Resources
(ASX:
CVY
)
In April 2010, Nuinsco crystallized the value of its
Cameron Lake Gold project (now called Cameron
Gold Project), located near Kenora, Ontario, through
its sale to Coventry Resources Limited. Nuinsco
received total consideration valued at approximately
$12 million comprised of cash, Coventry Resources
shares and a 3% net smelter return royalty.
Coventry Resources is focused on gold assets
in the Superior Province in Eastern Canada.
Coventry Resources’ principal asset is the
Cameron Gold project. Following the acquisition
from Nuinsco, Coventry Resources announced a
recalculated JORC-compliant indicated and
inferred mineral resource estimate as follows:
fnancial resources to advance its exploration
projects in Canada, Turkey and potentially in Egypt.
We are confdent that Coventry will be successful
in executing its plans to advance the project and
expect that Nuinsco’s royalty and equity interests
will appreciate in value as a result of its efforts.”
Coventry Resources also has another gold
exploration asset, the Ardeen Gold Project located
about 110km west of Thunder Bay, Ontario,
which has historically produced about 30,000
ounces of gold and 140,000 ounces of silver
from underground workings, according to Coventry
Resources. For more information, please visit
www.coventryres.com
Victory Nickel
(TSX:
NI
)
In 2007, Nuinsco spun off three nickel projects,
Minago, Mel and Lac Rocher, to create Victory
Nickel. Shares in the new company were
distributed to Nuinsco shareholders, creating
immediate value, and Nuinsco also retained
a stake in Victory Nickel Inc.
Today, Victory Nickel has four sulphide nickel
projects, including the Lynn Lake Mine which
Victory Nickel has optioned to Prophecy Platinum
Corp. (TSX-V:NKL) in return for cash and shares
in Prophecy. Victory Nickel has one of Canada’s
largest sulphide nickel inventories, and is focused
on becoming a mid-tier nickel producer. The
Company’s Minago project was recently permitted
and mine development can now begin. Nuinsco is
confdent that its strategy of using equity in other
companies as one means of fnancing will continue
to serve shareholders well and provide the
opportunity to effectively explore its projects in
Canada and abroad.
Forward-Looking Information:
This document contains forward-looking information. All statements, other than statements of historic fact, that address
activities,
events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information
refects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks
and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are
realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or
events to differ materially from current expectations include, among other things: the possibility that actual circumstances will differ from estimates and assumptions; uncertainties
relating to the availability and costs of fnancing needed in the future; failure to establish estimated mineral resources; fuctuations in commodity prices and currency exchange
rates; infation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be
duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in
obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and
personnel; changes to regulations or policies affecting the Company’s activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the
heading “Risk Factors” and elsewhere in the Company’s annual information form dated March 31, 2011 fled on SEDAR at www.sedar.com. Currently, Egypt is experiencing a state
of civil unrest and political transition, the consequences of which are diffcult to determine with certainty at this time and which may adversely affect the ability of Nuinsco and
its partners to obtain tenure to its Egyptian projects and may negatively affect exploration activities and/or such projects. There is no assurance that future political and economic
conditions in Egypt will not result in the Government of Egypt adopting different policies respecting foreign development and ownership of mineral resources. Any such change in
policy may result in changes in laws affecting ownership of assets, land tenure and mineral concessions, taxation, royalties, rates of exchange, environmental protection, labour
relations, repatriation of income and return of capital, which may affect the ability to undertake exploration and development activities in respect of its properties. The effect of these
factors cannot be accurately predicted. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although
the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. All exploration work is supervised by Paul Jones, President, who acts as
QP under National Instrument 43-101.