IBI CORPORATION: PRIVATE PLACEMENT AND FINANCE UPDATES
TORONTO, ONTARIO--IBI Corporation (IBIC : CDN) (the "Company"), a junior mining company, announces a number of finance and operational updates:
Bukusu Project - Uganda
Following meetings in the United Kingdom with Mr Hans Hansen, Manager of Operations for the Namekara vermiculite projects in Uganda, a detailed operating business plan is being drafted to preserve and protect the Company's existing investment. It is anticipated that this will lead to initial commercial production by the fall of 2000. Operations will continue in the name of Canmin Resources Limited, a subsidiary of IBI Corporation ("Canmin").
Mr Hansen has arrived in Uganda to reopen the Canmin office in Kampala, and has reassembled the on-site management team which had carried out the final Namekara development work in mid-1999.
Mr Hansen was the former co-owner, director and mine manager for the Shawa vermiculite mine in Zimbabwe, Africa. He successfully developed and commercialized this 120 employee operation, before its sale to international interests. Throughout his career, he has managed and developed a number of business and agricultural ventures throughout Africa, and has effectively worked closely with government and commercial groups to bring these ventures to success.
The previous development work had resulted in resource size assessment, initial testing of vermiculite for exfoliation characteristics and absence of asbestos fibres, provision of laboratory samples to select customers resulting in positive feedback, completion and government approval of an environmental impact study, and documenting of the mine plan. See news releases dated March 12, March 29, April 20, May 17, May 25, and June 29 1999.
Initial priorities in the operating business plan will involve site restoration from previous trenching, acquisition and fabrication of processing equipment, completion of market development strategies, production of commercial samples for target customers and start-up of commercial production.
Funding for this stage will come from completion of the private placement announced February 21, 2000 and from anticipated loans from the East Africa Development Bank ("EADB"). EADB had previously indicated a willingness to support this project based on the level of the Company's investment.
The Company's agreement with International Mining and Development ("IMD") continues in default for failure to make payments as due, as reported in the news release dated September 29, 1999. Efforts continue to put it into good standing.
Gary A Fitchett CA, the Company's President and CEO, has scheduled a trip to Uganda in Mid-April to follow-up on a number of significant matters.
Kibi Goldfields Project
Kibi is a placer gold project in Ghana which had been temporarily suspended because of economics related to the price of gold.
The Company has put this project into the hands of an independent consultant to assess its prospects and to attempt to sell the Company's interest or to locate a joint venture partner for development of the project. At this time it is not expected that the Company will invest any additional funds into the project.
Contact has been made with a number of parties who are expressing interest in the project.
Private Placement
As announced on February 21, 2000, the Company has structured the private placement of 12,500,000 units priced at Cdn$0.04 each. Each unit will consist of one common share and one warrant which may be exercised at any time within two years, to acquire an additional common share at the price of $0.045.
The common shares and the warrants are subject to a one-year hold period from the date of purchase.
Approximately 10,000,000 units at an aggregate consideration of Cdn$400,000 have been subscribed or committed, and are expected to close by April 30, 2000. These placements are at arm's-length to the Company.
The funds will be used to further the Company's business plan as noted above.
Exercise of Warrants
During the month of March 2000, warrants to acquire 52,000 shares in the Company at $0.06 were exercised for a total consideration of $3,120.
Extension of Warrants from Rights Offering
Pursuant to the Company's rights offering of February 1999, which was fully subscribed, 18,183,844 units were issued, each unit including one warrant which entitled the holder to acquire one common share at $0.06 prior to February 21, 2000.
There are 15,233,964 warrants outstanding at this time, subsequent to the exercise noted above.
At the request of several shareholders and other interested parties, the expiry date for exercise of the warrants has been extended until May 31, 2000.
All other terms of the warrants remain unchanged.
Board of Directors
The Company announces the resignation of James R Glass P.Eng from the Board. Because of his location in Vancouver British Columbia, he was unable to effectively participate in the Board's activities. Gary A Fitchett, the Company's President, expressed his sincere appreciation to Mr Glass for his technical assistance in assessing the Company's resource projects.
Annual General Meeting
The Company is planning an Annual and Special Meeting of shareholders to be held in Toronto within 60 to 90 days, and will be announcing the date shortly.
Common Shares Outstanding
The Company has 203,317,169 common shares issued and outstanding, before closing of this private placement and after the exercise of warrants, both as noted above. |
