IBI Corporation announces the following updates:
Second Quarter Financial Statements Unaudited financial statements for the six months ended June 30, 2000 were completed and filed on SEDAR on August 28, 2000, on an expanded and more comprehensive basis with balance sheet and explanatory notes thereto, in accordance with proposed OSC Rule 2-501. The statement of operations again reflected the substantial reduction in operating expenses for the six month period in accordance with the Company's restructuring program, from $418,464 in 1999 to $144,155 in 2000. A significant portion of year 2000 exp nses were not paid in cash. As a result of the new financing raised in the period, the Company had cash on hand at June 30, 2000 of $111,352. The balance sheet reflects a continuing focus and condition in accordance with the Company's new business plan.
Annual Report The Company's Annual Report and Proxy Information Circular were mailed to shareholders in August. Analysis of the shareholder base for this purpose indicated that there are approximately 2,700 shareholders of the Company. In addition to the standard Information Circular covering the years 1998 and 1999, the Annual Report included the President's Message, Corporate Profile, Management Discussion and Analysis of Financial Condition and Operations, Annual Audited Financial St tements, and a discussion of Namekara Vermiculite. The entire Report can be viewed or printed from the Company's Web Site, www.thenewibi.com .
Updated Technical Report As a supplement to the original assessment in June 1998, an updated independent Technical Report has been prepared by Kretschmar International Geoscience Corporation under date of August 28, 2000. The focus of the report was the Namekara Vermiculite section of the Bukusu Mines Project in Africa, and it assessed the further ground work and exploration activities and independent laboratory testing completed in 1999 in the development of the project. Important conclusions by Dr. Kretschmar were as follows: "Namekara enjoys several competitive advantages and therefore can command higher prices. It is a very high grade deposit and therefore has low mining capital equipment and benefication costs. Virtually grit-free, course grade concentrate can be readily ob ained. Namekara vermiculite has favourable milling, exfoliation, and cation exchange properties. The container port of Mombasa is several thousand kilometres closer to European and Middle-East markets than are Beira (Shawa, Dinidza) or Durban (Natkruit) o Maputo (Palabora). Proven reserves are sufficient for more than 100 years of production at foreseeable mining rates." The Namekara vermiculite project has reached an advanced pre-production stage and full scale production and marketing is proceeding. There has been strong local and government support for Canmin efforts. There appear to be no geological, technical (miner l-chemical), or regulatory impediments to immediate full scale commercial development of the Namekara vermiculite deposit." The full report has been submitted to the Canadian Dealing Network ("CDN") to meet current information requirements.
Progress on Namekara Vermiculite Project
* A final site plan has been surveyed and documented;
* A compensation schedule for private landowners has been prepared and certified by government officials, at a total cost for compensation at this time of approximately US$15,000;
* A borehole has been drilled, providing good quality and quantity of potable water for the production process, and to be shared with local residents, who previously did not have a good source of water;
* Talks continue with East Africa Development Bank for additional financing, based on supplementary information provided;
* Permits received from Geological Survey and Mines Department to export bulk samples to prospective customers; * A 20 tonne container has been placed on site and filled with sun-dried raw vermiculite from the mine, for hand-processing of bulk samples;
* A 500 kg bulk sample has been shipped to an additional prospective middle-east customer;
* Certain preliminary equipment has been located or is being fabricated to allow the start-up of low volume production;
* Canmin was invited to participate and showcase its progress and achievements to date in a symposium on Mining in Uganda held in Kampala on September 7, sponsored by the Geological Survey and Mines Department;
* Mr. Hans Hansen, managing director of Canmin, has now obtained his permanent residency visa for Uganda, and will be relocating his home with his family to Kampala in the next month.
Annual General Meeting of Shareholders The annual and special meeting to be held on September 19 at The Auditorium of The Toronto Stock Exchange will cover technical compliance requirements for fiscal 1998 and 1999, and accordingly the Company will then be up-to-date in such matters. Although there had been extensive discussion of the prospect of seeking shareholder approval at this meeting for the consolidation of shares, the Board has decided to defer this matter to the 2000 meeting, expected to be held in the spring of 2001. It is anticipated that the Company will be further advanced with its business plan at that time.
Common Shares Outstanding The Company has 204,952,878 common shares issued and outstanding, before the closing of the private placement announced February 21, 2000. - 30 - FOR FURTHER INFORMATION PLEASE CONTACT : IBI Corporation Gary A. Fitchett CA Chairman, President and CEO (416) 367-3274 or Adrienne Shillinglaw Investor Relations (416) 367-3274 (905) 985-1249 e.mail: ibicorp@think.iprimus.ca http:// www.thenewibi.com INDUSTRY : MNG SUBJECT : NWS |
