| | | September 09, 2004
MBMI Signs Joint Venture on Three Nickel Properties
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| | Further to the Company's news release of June 28, 2004, MBMI RESOURCES INC. (MBR-TSXV "MBMI") and Olympic Mines & Development Corporation ("Olympic") have signed a definitive property purchase and joint venture agreement under which MBMI can earn an interest in three nickel laterite properties in Palawan, Philippines ( The Olympic Properties ). The agreements enable MBMI to hold both directly and indirectly up to an initial 60% interest in the joint venture. The transaction is subject to TSX Exchange approval.
MBMI intends to develop the high grade nickel laterite material as Direct Shipping Ore, a strategy the Company believes will allow it to generate cash flow with minimal capital cost. Two of the Olympic Properties are contiguous to Sumitomo Metal Mining Co. Ltd's "Coral Bay" project which has been operating a successful Direct Shipping Ore facility for many years. Evaluation of historic drill results and geological data has enabled MBMI to identify primary drilling targets on these properties which could lead to the accelerated development of these two properties.
An independent NI 43-101 geology report completed by consulting geologist, Steven Goertz, has concluded that high grade(>2% Nickel) potential of 8-9 million tonnes for the (2) Rio Tuba properties and approx. 1.3 million tonnes for the Bethlehem property for a total of 9- 10 million tonnes exists.
The Joint Venture Agreement is structured in a series of phases to facilitate a cost effective exploration program. MBMI can earn its interest in the joint venture by making a total of US$95,000 in property payments per property on a phased basis and by financing exploration costs through to production. Upon achieving "project construction development" status, MBMI shall make a further $120,000 payment per property. Properties can be "dropped" at any time thus halting further payments per specific property. MBMI will be responsible for project funding, and may dilute Olympic to a royalty interest of 2.5% net revenue return. A finder's fee will be paid in connection with the transaction.
The acquisition of these projects is a result of the Company's long term presence in Palawan Philippines, its expertise in nickel laterites, and contacts with major nickel buyers in Asia.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
For further information, contact:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991
Email: mbr@mbmiresources.com
Website: www.mbmiresources.com
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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