| | | October 03, 2005
MBMI Resources Enters Strategic Relationship With Chinese Steel Producer
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| | MBMI RESOURCES INC. (TSXV:MBR) "MBMI" is pleased to announce it has reached an agreement with Zhejiang Huaguang Smelting Group Co. Ltd. ("HGMG") to invest in its Bethlehem and Alpha nickel projects in the Philippines. Under the terms of the agreement, formal transaction documents are expected to be completed within 35 days. 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 the development of the Company's projects on the Alpha and Bethlehem properties, which are located approximately 5 kilometers west of the town of Narra on Palawan Island in the Philippines. The Agreement is subject to approval of the boards of directors of MBMI and HGMG and any necessary regulatory approval.
Michael Mason, President of MBMI said "the investment by HGMG will allow for the development of the direct shipping ore projects on the Alpha and Bethlehem properties. MBMI is excited to have a large Chinese steel producer who will purchase some of the product from these mines as our partner. It is the intention of the partners to bring a small scale direct shipping ore mine into production as soon as possible. This mine will be expanded as soon as the mineral resource on these properties is fully delineated."
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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