| | | September 29, 2008
MBMI Reports on Six Month Financial Period
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| | Vancouver, B.C., September 29, 2008 - MBMI RESOURCES INC. ("MBMI" or the "Company") (TSX V: MBR) is pleased to report on the six-month financial period ended July 31, 2008. Full financial results may be found at www.sedar.com or the Company's website (www.mbmiresources.com). A summary of the financial statements and highlights of the period are as follows:
Highlights
- 65,562 Dry Metric Tonnes ("DMT") of nickel material shipped during the period for proceeds of approximately US$6.6 million
- Small Scale Mine Operating Permits ("SSMO") extended enabling 200,000 additional DMT to be shipped within next two years from the Alpha property
- Mines Adjudication Board ("MAB") ruling in favour of MBMI and partners
- Subsequent to the end of the period, the Chinese metals market has reopened and the Company has shipped approximately 80,000 Wet Metric Tonnes ("WMT") of nickel material to various buyers in China and Japan
- Current finished nickel material inventory of 137,517 WMT ranging in grades from 1.39% to 2.08% nickel
- Cash flow from nickel material sales continues to fund development activities for the fiscal year to date without reliance on external financing
Long-Term Supply Agreements:
The Company has entered into negotiations with several major international strategic partners who wish to secure long-term stable sources of raw material supply. The negotiation of these long-term "framework" supply agreements is ongoing. One of the Company's Philippine partners has negotiated several nickel sales agreements for multiple nickel bearing materials ranging from 1.5% nickel to greater than 2.3% nickel as pertaining to the Alpha property.
A total of 65,562 DMT was shipped during the period for total proceeds of approximately US$6.6 million. The Company's proportionate joint venture share of $3,953,418 was included in the interim statements as a deduction from mineral properties and deferred exploration costs. Since the end of the period, the Company has shipped approximately 80,000 WMT of nickel material to various buyers in China and Japan.
Investment in Mineral Exploration and Development
The Company's share of total expenditures on mineral properties during the six month period ended July 31, 2008 was $4,948,567. Overall, exploration costs paid in the six month period are consistent with maintenance of the Alpha property permits, drilling on the Alpha property, assaying and operation of the lab, as well as wages for site personnel. Exploration costs also include the development of an excavation pit, hauling to the stockyard of mineralized nickel material, as well as crushing, drying, blending and sorting operations necessary for direct shipping operations. Additional (shipping) expenses relates to the charter of LCT/barges for the loading of nickel material, net of sub-let revenues, payments to port authorities, freight and brokerage in respect of the shipment of nickel material.
Development work in the period focused on development drilling, the construction of the stockyard facilities, road widening and acquisition of movable and crushing equipment. Development projects in progress include the building of surface structures (staff housing), haulage road widening and new mine road construction, and settling pond construction and maintenance.
Though most costs were incurred in respect of the Alpha property, the Company also incurred property maintenance payments and accrued option costs for the Samar and Olympic properties, and made advances in respect of pre-export financing, exploratory and permitting expenses, secured by the nickel product stockpiles, for a long-term purchase agreement for nickel material from a project owned by unrelated interests on Dinagat Island, Philippines.
Full-Scale Mining Application:
During September, 2008, the Company's Philippine partners received a favourable ruling from their appeal to the MAB of the Philippines Department of Environment and Natural Resources related to the Alpha Property, Bethlehem Property, and the two Rio Tuba Properties all located in the Province of Palawan.
The MAB ruling overturns a "status quo order" issued previously by a regional Panel Of Arbitrators in 2007 (see news release November 27 2007) pursuant to a challenge initiated by a 'shell company' known as Redmont Consolidated Mines Corp ("Redmont"). The Company and its Philippine legal counsel maintained that this challenge had no legal merit and was an attempt by Redmont and its backers to illegally gain an interest in these projects. This ruling validates the Philippine corporate ownership structure of MBMI and its Philippine partners and confirms this structure is consistent with accepted practice in the Philippines and is in compliance with the requirements of Philippine law.
MBMI's Philippine partners are working closely with the Philippine government to complete the full-scale mining permit process; applications relating to the Alpha property and three other Palawan nickel projects are currently advancing through an approval process.
MBMI Resources Inc. is a Canadian-based mining company focused on the exploration and development of nickel mineral properties in the Philippines. MBMI and its Philippine partners have an interest in nine nickel laterite projects in the Philippines, covering an area greater than 22,000 hectares. MBMI's objective is to become a major supplier of high-grade nickel products to primary industrial consumers in Asia.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
Further Information
For further information relating to the Company or this release, please refer to the Company's website at www.mbmiresources.com or contact Investor Relations at 1-877-399-1991 or mbr@mbmiresources.com.
The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.
This news release may contain forward-looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements. At this time the Company has not yet established NI 43-101 compliant mineral resources or mineral reserves that would support a commercial mining operation. |
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