| | | May 02, 2005
MBMI Expands Nickel Resource Potential
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" is pleased to report that it has entered into a Memorandum of Agreement (MOA) with Falcon Ridge Resources Management Corporation (Falcon Ridge) of the Philippines, within which MBMI can earn a major interest in three Southern Samar, Philippines nickel properties comprising a combined area of 10,146 Hectares. The MOA, which enables MBMI to hold an initial 60% interest in the joint venture, is subject to completion of a definitive joint venture agreement, Board of Directors and regulatory approval.
Drilling and exploration conducted during the 1970's by Olympic Mines and Development Corporation and its strategic affiliates resulted in a historic resource estimate, (which may not conform to current NI-43-101 standards), totalling 300 million tonnes (DMT) with average grade in excess of 1.5% Nickel. An up to date NI-43-101 technical report is being prepared and is expected to be completed shortly.
This transaction has enabled MBMI to gain a major interest in seven Philippine nickel properties covering a total area in excess of 22,000 hectares.
The MOA contemplates completing a Joint Venture Agreement which is to be structured in a series of phases to facilitate a cost effective exploration program. MBMI has made a US$60,000 "due diligence" payment and can maintain its interest in the joint venture by making a total of US$370,000 in property payments per property on a phased basis and by financing exploration costs through to production. Upon achieving "mine commissioning status", Falcon Ridge may waive its 40% equity participation in exchange for a 2.5% net revenue royalty.
The acquisition of these projects is a result of the Company's long term presence in the Philippines, and its expertise in nickel laterites, and is part of MBMI's objective of becoming a supplier of high grade nickel laterite material to the primary nickel consumers in Asia.
Mr. John Cook, (P.Eng.) is the qualified person as defined in National Instrument 43-101, and has reviewed the contents of this news release.
MBMI now maintains a major interest in seven nickel properties (22,000 hectares) in the Philippines, and also holds the rights to three Canadian gold projects.
For further information:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991
Email: mbr@mbmiresources.com
Website: www.mbmiresources.com
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. |
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