TORONTO (miningweekly.com) – Gold junior Orvana Minerals has filed its promised all-cash offer for explorer Kinbauri Gold, valuing the smaller company at C$29,3-million.

The two firms have been engaged in an increasingly acrimonious war of words, since Kinbauri rejected an earlier offer proposal from Orvana, and instead inked a loan and investment agreement with Quebec-based Glen Eagle Resources.

Earlier this month, Orvana asked the Ontario Securities Commission to halt Kinbauri's sale of 45% of its Spanish subsidiary, stop Kinbauri from selling up to six-million shares in a private placement, and order the company to publicly disclose the full details of its agreement with Glen Eagle.

Orvana produces gold from the Don Mario mine in Bolivia, while Kinbauri owns past-producing mines, as well as other projects and exploration properties, in Spain.

Orvana's offer, of C$0,55 a share, represents a premium of 39% over the closing price of Kinbauri's shares on May 8, 2009, the last trading day before the intention to offer was made public.

"We are offering Kinbauri shareholders a choice: tender to our offer and receive liquidity, value and certainty today or face a risky future with Kinbauri, whose plan to bring its Spanish properties into production relies upon uncertain financing and inexperienced management,” Orvana chairperson Kent Jespersen said in a statement.

Orvana's cash reserves of C$112,5-million at the end of the first quarter are "more than sufficient to acquire Kinbauri's shares and then to develop Kinbauri's Spanish mineral project", the company said.

The offer will be open until June 30, and is conditional on Kinbauri terminating its agreement with Glen Eagle.

Shares in Kinbauri rose 1,85% on Monday morning, to C$0,55 apiece. Orvana dropped 4,11%, to C$0,70 a share.

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