UPDATE 1-Nio-Metals withdraws Niocan offer

Wed Mar 2, 2011 11:45pm GMT
 

* Says could not meet Niocan's price expectations

* Says Nio-Metals may reconsider position in future

NEW YORK, March 2 (Reuters) - Nio-Metals Holdings LLC, the largest shareholder in Niocan Inc NIO.TO, has withdrawn its offer to buy the rest of the rare earth mineral explorer it does not already own, saying it did not agree with the current valuation expectations of Niocan's board.

Nio-Metals, which has a 42 percent stake in the company, proposed on Jan. 11 to acquire all of the outstanding shares of Niocan for C$0.70 each. The stock closed at C$1.05 on the Toronto Stock Exchange on Wednesday.

Nio-Metals said in a statement on Wednesday that it may reconsider its position and engage with the company in a process to acquire Niocan at any time in the future.

Niocan, which owns and develops niobium property in Oka, Quebec, has also received a competing buyout proposal from mineral explorer Augyva Mining Resources Inc AUV.V. (Reporting by Soyoung Kim; Editing by Steve Orlofsky)

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