| | | November 21, 2005
MBMI Updates Chinese Steel Producer Relationship
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| | MBMI RESOURCES INC. (TSXV:MBR) "MBMI" further to the announcement of October 3, 2005, wishes to update its agreement reached with Zhejiang Huaguang Smelting Group Co. Ltd. ("HGMG") regarding an investment in its Bethlehem and Alpha nickel projects in the Philippines. Pursuant to terms of the agreement, formal transactional documents related to MBMI's Philippine subsidiary companies, as well as a Direct Shipping Nickel Frame Contract have been prepared, translated, and delivered to HGMG. Subject to completion of related Accession and shareholder agreements, and receipt of government, regulatory, and boards of directors approvals, HGMG will invest US$4 million for a 16% interest in the projects. HGMG has an option for 60 days after closing to increase its interest in the projects to 20% by investing an additional US$1 million. These funds will be used for the continued exploration and development of the Company's Alpha and Bethlehem projects, which are located approximately 5 kilometers west of the town of Narra on Palawan Island in the Philippines.
HGMG is a private Chinese steel producer which currently operates three blast furnaces in China and consumes 1.2 million tons of direct shipping nickel ore per year producing a ferro-nickel product for use by stainless steel producers.
In addition to the Alpha and Bethlehem projects MBMI currently has two other nickel projects on Palawan Island in the Philipines and is in the process of acquiring four additional projects in Samar province in the Philippines. The Company's primary objective is to become a supplier of high-grade nickel material 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
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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