IBIC Trading / Private Placement Over-Subscribed
TORONTO, ONTARIO--
IBI Corporation (IBIC) (the "Company"), a junior mining and investment company, announces the following updates:
Trading of IBIC
The Company's shares continue to trade on the over-the-counter market in Canada under the symbol IBIC, and trades are effected by direct communication and arrangements between participating brokers. Daily reporting of trading volumes and prices are no longer available, following the recent merger of the Canadian Dealing Network ("CDN") with the Canadian Venture Exchange ("CDNX"), and the replacement of the CDN reporting system with the Canadian Unlisted Board ("CUB"). CUB does not provide information to the public on trading volume and prices.
The Company's application for listing submitted in late August 2000 to CDN remains outstanding.
Private Placement Increased
The private placement announced February 21, 2000 of 12,500,000 units priced at $0.04 each has been over-subscribed, and the Board of Directors ("Board") has approved the increase in the placement to 14,500,000 units, and has extended the closing. Each unit consisted of one common share and one warrant to acquire an additional common share at the price of $0.045, exercisable at any time within two years. The common shares and the warrants are subject to a one-year hold period from the date of purchase.
The proceeds now received exceed $500,000. It is contemplated that closing will take place in November 2000. The placement utilizes New Brunswick and United States exemptions.
Gary A. Fitchett, President, advised the Board that: "These additional funds will allow its Ugandan subsidiary, Canmin Resources Limited, to accelerate the start-up of initial commercial production from the Namekara vermiculite mine".
Other Updates on Namekara Vermiculite Project
* Agreements have now been signed and appropriately endorsed by supervising government officials for the purchase of all required land for the mine site and the vermiculite processing plant and payment of compensation for lost crops and structures, all at a cost of US$15,000. Deposits on the purchase transactions have been made by Canmin to newly opened bank accounts for each of the vendors. The balance of funds will be transferred later this week.
* Negotiations have advanced with the Ministry of Energy for the installation of an electric power line to the plant and mine site. Surveying of the line is scheduled to start in the next month.
The World Bank has released its annual ranking of borrowers, which is a comprehensive and broadly-based evaluation of government performance and stability in political, economic and social matters and in compliance with loan covenants. Uganda was one of only three countries out of 74 which scored straight As. As The East African publication reported: "Uganda has for the past decade won the admiration of the IMF, World Bank, and other Western creditors for its progressive economic policies."
Investor Relations and Communications
The Board has reviewed and adopted a comprehensive investor relations plan, intended to continue and enhance the level of communications with existing and prospective investors in the Company. The start-up of this program will coincide with the commencement of commercial operations in the Company's first active business, the Namekara vermiculite mine in Uganda.
To assist with the implementation of this plan, the Company has engaged Mr. Adam Cegielski as an investor relations representative, commencing immediately. Mr. Cegielski is initially retained on a three month basis, for subsequent review, and is to work on a one-half time basis at a monthly fee of $2,000, plus reimbursement for any out-of-pocket expenses. He will work from his personal office at 4287 Village Centre Court, Mississauga, Ontario and he can be reached at telephone (905) 279-2622 (as of November 2) and at e.mail newibi@on.aibn.com
Mr. Cegielski is a graduate of the University of Guelph with a B.Sc. Hons in Biochemistry with a supplementary Co-op Diploma and has been an interested shareholder in the Company for a period in excess of one year.
Mrs. Adrienne Shillinglaw, who formerly carried on this role, has retired from the Company to start a new career of motherhood.
Audit Committee
In order to comply with statutory and regulatory requirements, an audit committee has been appointed, comprised of Lloyd E. Dove (chairman), John R. Penic, and Leon H. Gouzoules. A Compensation Committee will be appointed at a later date.
Shares Outstanding
The Company has 204,952,878 common shares issued and outstanding, before the closing of the private placement outlined above. |
