| | | June 13, 2007
MBMI Negotiates Modification To Olympic Projects Agreement
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| | June 13, 2007. MBMI RESOURCES INC. (MBR:TSXV) ("MBMI") ("the Company") is pleased to advise, that it has negotiated a modification to the Olympic Mines and Development Corporation.("OMDC") Agreements. The three nickel properties included within the OMDC Agreements are the Bethlehem, Bataraza, and Malatgao projects located in Palawan Philippines.
The modification gives MBMI, the right to increase its direct and indirect interest above the current 60% when MBMI is issued a Financial and Technical Assistance Agreement ("FTAA"), or MBMI's decision to allocate interest to a qualified Philippine Partner(s). As a result of this modification, OMDC shall retain a 5.5% net revenue return royalty. Upon receipt of an FTAA for these properties, MBMI anticipates that 15% of the projects' equity will be retained by Philippine Partners and the balance held by MBMI.
In September 2004, MBMI entered into a series of agreements with OMDC concerning the three Palawan properties which were structured in order to comply with Philippine law such that MBMI held a direct and indirect interest in the properties of 60%. The joint venture agreement provided that OMDC could receive up to USD$520,000 in a series of development milestone payments to the point of a mine feasibility study. Should OMDC fail to make any required capital contributions after that point (mine feasibility) then, with the consent of OMDC, and subject to compliance with Philippine Law, OMDC could be diluted to a 2.5% net revenue return royalty.
MBMI has determined that each of the properties shall be advanced to production status, and therefore, has agreed to accelerate the US$520,000 property payments and has applied for an FTAA which would allow MBMI to directly hold an increased interest in the projects.
MBMI recognises the need to maintain local ownership and participation in the Palawan projects, and is working with the local municipalities to ensure tangible benefits are allocated throughout the Philippine community. The Company believes that the modified Agreement allows for a well balanced ownership providing benefits to all stakeholders.
MBMI and its Philippine partners jointly control a 100% interest in eight nickel laterite projects in Palawan and Samar, Philippines covering an area in excess of 22,000 hectares where the objective is to develop a series of major suppliers of high-grade nickel products to the primary nickel consumers in Asia.
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
Forward Looking Statement
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from either of the Companies' expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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