BSNS WIRE) Orex Corporation Engages Investment Banking Firm
Orex Corporation Engages Investment Banking Firm
Business Editors
CORAL GABLES, Fla.--(BUSINESS WIRE)--Feb 1, 2000--Orex
Corporation ("Orex") (OTCBB:ORXXE) announced Tuesday that it has
engaged the services of IBK Capital Corp. of Toronto, Ontario, Canada,
for the purpose of project financing. IBK Capital is an independent,
privately owned investment-banking firm, which offers a full range of
services to the mining industry. IBK Capital was founded by a group of
experienced professionals who had previously worked for many years as
investment bankers with Merrill Lynch Canada Inc. Since its inception
in February 1989, IBK Capital has established an enviable track record
as an independent Canadian financial advisory firm, having played a
role in transactions with a combined value of approximately $908
million. IBK Capital completed many financial advisory engagements
including capital raising assignments for a large number of senior and
junior resource companies. IBK Capital will assist the company in
raising US $8 million for its mining projects.
The company further announces results from Actlabs-Skyline of
Tucson, Ariz., on silica vein material from the Santa Maria properties
that was processed during the company's December 8, 1999
demonstration. Although full results will be available on the
company's website, www.orexgold.com, a summary of the relevant values
is 99.48% silica and 19200 ppb gold.
The company is extremely pleased with these results both as a
verification of the results received earlier from another independent
lab and as further evidence that the company has successfully
extracted gold and other values from the vein material and purified
the silica to marketable levels. Orex is continuing to modify its
leaching process to maximize recovery of all salable products and is
optimizing the economics of the process for vein material found on all
current Orex claims.
Orex intends to complete pre-feasibility studies on the
Silica/Gold properties currently held by the company and move to
feasibility as soon as possible. Acquisition of the Waters/Sunset
patented mill site and mine has been completed near the Santa Maria
site. This mill site will replace the Carl's Santa Maria test
facility, which was determined to be unsuitable for the large planned
production-scale operations.
With the capital acquired, Orex will construct, on the newly
acquired patented claims, a state of the art silica mill with a
capacity of 600 to 1000 tons per day. Orex's obvious advantage in the
silica market is its byproduct production of gold valued at nearly $75
per ton. The gold, along with other salable byproducts, will defray
most of the anticipated mining and production costs, increasing the
profitability of the operations.
Trends indicate that demand for silica should continue to grow
and prices should remain strong well into the future. These growing
markets will continue to promote domestic production, especially in
the southwestern United States where demand is high and there are few
competitors. Ground silica is used as a filler in plastics, rubber,
and paints, and initial investigations indicate that these markets are
currently being supplied by non-regional suppliers over whom Orex has
advantages in shipping costs. Silica markets will continue to grow as
the world economy expands and new applications and technologies exert
growing pressure on supplies.
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance and
underlying assumptions, and all statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulation, and other risks defined in this document. These cautionary
statements expressly qualify all such forward-looking statements made
by or on behalf of Orex. In addition, Orex disclaims any obligation to
update any forward-looking statements to reflect events or
circumstances after the date hereof.
--30--gaa/mi*
CONTACT: Orex, Coral Gables
Investor Relations Contact:
Greg Finney, 305/444-5890
or Jeff Blackburn, 520/668-0460
KEYWORD: FLORIDA
INDUSTRY KEYWORD: MINING/METALS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
JCNelson |
