| | | November 27, 2007
MBMI Announces $9.5 Million Financing, Updates Corporate Activities
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| | Vancouver, B.C., November 27 2007. MBMI RESOURCES INC. (MBR: TSX-V) ("MBMI") (the "Company") reports that it has arranged a non-brokered Private Placement financing of up to 8,260,869 Units at $1.15 per Unit for gross proceeds of $9,500,000. Each Unit will consist of one Common Share and one Common Share Purchase Warrant. Each full Warrant will entitle the holder to purchase one Common Share for a period of 2 years at a price of $1.40. Finders' fees will be paid in connection with this financing. The Private Placement is subject to regulatory approval. The net proceeds shall be used for exploration and development of the Company's Philippine nickel mineral properties, and for general corporate purposes.
As previously disclosed with respect to the Alpha nickel laterite project located in Narra Palawan, MBMI's subsidiaries have been issued three small scale mine operating (SSMO) permits by the government of the Philippines. The SSMO's allow the shipment of up to 50,000 dry metric tonnes of material per year for a two year period from each 20 hectare permitted area. To date, in excess of 60,000 wet metric tonnes of mineralized material has been excavated and transported to the stock yard where it is being prepared for shipment. Management has been advised by its Philippine partners that shipping permits are proceeding in a timely fashion. It should be noted that the Company has not yet established a mineral resource in accordance with CIM classifications pursuant to NI-43-101 that would support a commercial mining operation. The Philippine government has not yet granted full mineral tenement rights to the properties and the Company only has the right to carry out small scale mining operations in accordance with the government regulations and not the right to commence full scale commercial production.
The Company has been advised by its Philippine legal counsel of a 'Status Quo Order' proposed to be issued by a DENR Panel of Arbitrators potentially affecting one of the small claim mining permits. The Company intends to deal aggressively with this frivolous and vexatious litigation which, in the assessment of management and its legal counsel, has no merit and little chance of success. Philippine legal counsel has advised the Company that the proposed order is ambiguous and invalid.
MBMI's Philippine partners have advised the Company that the Bethlehem property, located in Palawan, Philippines has been granted its National Commission on Indigenous Peoples (NCIP) Compliance Certificate. This is a major step forward in the Company's progression towards the granting of an FTAA (Financial and Technical Assistance Agreement) from the Philippine authorities. In addition, the Company and its Philippine subsidiaries continue to advance the FTAA applications on the other Palawan nickel projects which upon issuance will solidify their mineral tenure.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
For further information:
David G. Tafel -- VP Corporate Development, Director
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 not reviewed and does not take responsibility for the accuracy of this release.
This news release may contain forward-looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements. |
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