| | | June 08, 2005
MBMI Closes Alpha Property Acquisition
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" is pleased to report, that further to its news release of May 24, 2005, it has received regulatory approval for the joint venture agreement with Palawan Alpha South Resource Development Corporation (Alpha) under which MBMI can earn a major interest in the Alpha nickel property. The 3,277 hectare property is located in Palawan, Philippines and is adjacent to MBMI's Bethlehem nickel laterite property which is currently being drill tested. The agreement, which enables MBMI to hold an initial 60% interest in the joint venture, shall be maintained by making a total of US$220,000 in property payments and by financing exploration and development costs through to production. There is no fixed work commitment in the first year. Upon achieving "project financing status", MBMI may dilute Alpha to a net smelter royalty interest of 2.5%.
The acquisition of the Alpha project 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.
Shares for debt
MBMI reports that it has agreed to issue to a long term creditor of the Company, an aggregate of 505,748 shares to settle outstanding debt of $187,127. The debt is being settled at a deemed price of $0.37 per common share, and will be subject to a hold period of four months from the date of issuance of the shares. The transaction is subject to regulatory approval.
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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