BIG IBIC NEWS INSIDE!!!
IBI Corporation: Canmin Vermiculite Project Update
TORONTO, ONTARIO--
IBI CORPORATION (IBIC:CDN) (the "Company") announces a number of matters related
to its ongoing restructuring.
Audited Financial Statements
As announced on May 17, 2000, the Company was delayed in completing its audited annual financial statements for the year ended December 31, 1999 because of the illness of the President, Gary A. Fitchett, and the inherent need to postpone his trip to Uganda related to Canmin Resources Limited ("Canmin").
Mr. Fitchett has now returned and has clarified a number of outstanding issues, and has forwarded the required data to the Company's auditor, who will now work to finalize the financial statements.
Canmin Vermiculite Mine
Canmin has now completed the initial phase of opening its Namekara vermiculite mine at the Bukusu Carbonatite Complex in south-eastern Uganda. An area of approximately 2,500 square metres has been opened, to depths of 7 to 10 metres.
The overburden removed was utilized to start infrastructure development by construction of a site access road of 1.4 km in length. A stockpile of excavated vermiculite has been accumulated, to be used initially to produce commercial samples to be sent to a number of prospective customers.
Mr. Hans Hansen, vermiculite project development manager, noted that the excavated vermiculite ore appeared equal in quality to those samples tested by independent agencies in 1999, with positive results. He also noted that the characteristics of the ore improved with depth.
During his visit to the site, Mr. Fitchett observed the warm welcome and eager anticipation of the start-up of the mine by the members of the local community and the political leaders. It is expected that the vermiculite mine will provide 50 to 75 jobs to local residents.
Financing - East Africa Development Bank ("EADB")
In accordance with the initial start-up plan developed during the March meetings with Mr. Hansen, an application for financing was reactivated with the EADB. An application was submitted for a term loan of US$400,000 to complement the proposed equity contribution of US$569,325 from IBI Corporation (US$269,325 previous contribution; US$300,000 current commitment).
The EADB project officers appreciated the Company's scaled-down approach to start-up, which means that the authority for the loan is with the local branch in Kampala. The Company is to provide final copies of certain routine documents and data for review by EADB within approximately 10 days, and it is then expected that the Company would have a draft Offer of Finance within another 7-
14 days.
Planning Model and Timelines
As a result of the Uganda meetings, the Company is finalizing detailed program timing and costs, and it expects to announce these shortly.
Investment License
The Company confirmed that the Canmin Investment License continues in good standing.
Mine Site Infrastructure
Meetings were held with the acting commissioner of the Geological Survey and subsequently with the Minister of State for Energy and Mineral Development to brief them on our current progress and solicit their continuing support as required. The Minister expects to accommodate our requirement for a 12km to 14km power supply to the local area and specifically to our planned vermiculite
processing building.
Official Opening Ceremony
In accordance with the draft Planning Model, it is anticipated that the production facilities will be in place and ready for commercial production by approximately mid-September. The President of Uganda has sent word that he wishes to attend and participate in the opening ceremony of this project, which the Company's consulting geologist, Dr. Ulrich Kretschmar, in his June 1998
Technical Report deemed "world-class".
Other Matters
A number of other matters are under negotiation as a result of the meetings in Uganda, and it is expected that there will be further material announcements over the next thirty days.
The Company currently has 203,562,291 shares outstanding, without inclusion of the shares to be issued on closing of the private placement announced February 21, 2000. |
