| | | June 23, 2005
Samar Nickel Properties Agreement Modified
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" reports that further to its news release of May 2, 2005, it has modified the Memorandum of Agreement (MOA) with Falcon Ridge Resources Management Corporation (Falcon Ridge) of the Philippines, whereby MBMI can earn a major interest in three Philippines nickel properties located in the southern region of Samar province comprising a combined area of 10,146 Hectares. The modified MOA enables MBMI to increase its participation interest in the joint venture to 92%, subject to completion of the definitive agreements, and receipt of regulatory approval.
Drilling and exploration conducted during the 1970's by Olympic Mines and Development Corporation of the Philippines, and its strategic affiliates resulted in a historic resource estimate, (which is not compliant with NI-43-101), totaling 300 million tonnes (DMT) with average grade in excess of 1.5% Nickel. While the resources previously estimated do not conform to NI 43-101 standards, the Company believes them to be relevant, and is arranging for an up to date technical report to be completed.
The modified MOA contemplates entering into a joint venture which will be structured in a series of phases to facilitate a cost effective exploration program. The initial phase of the joint venture entails property payments totalling US$120,000 and the issuance of 876,691 shares (at a deemed value of $0.37 per share) and 438,345 warrants (exercisable at $0.65 for a period of 2 years). MBMI has made an initial US$96,000 payment and can maintain its interest in the joint venture by making a total of US$277,000 in property payments per property on a phased basis and by financing exploration costs through to production. (The original MOA allowed MBMI the right to hold up to 60% interest in the joint venture while making a total of US$370,000 in property payments per property to maintain this interest and financing costs through to production. Falcon Ridge had the option of waiving its 40% equity participation in exchange for a 2.5% net revenue royalty.)
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.
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. MBMI now maintains a major interest in seven nickel properties totaling 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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