Outstanding Progress At Namekara Vermiculite
TORONTO, ONTARIO--IBI Corporation (IBIC) (the "Company"), a junior mining and investment company, announces the following updates:
Mining Lease Granted in Uganda
Canmin Resources Limited, the 100% wholly-owned Ugandan subsidiary of the Company ("Canmin"), has been granted an exclusive mining lease by the Minister of Mines for mining, processing, and exporting of the unique Namekara vermiculite.
The Namekara vermiculite mine has proven reserves of high quality recoverable vermiculite in excess of 5 million tonnes, which will provide well over 100 years of production at foreseeable production rates. The mining will utilize low cost open-pit recovery methods.
Further Updates on Namekara Vermiculite Project
* The purchase of all required land for the mine site and the vermiculite processing plant and payment of compensation for lost crops and structures has now been finalized, with full payment made to the vendors. With the mining lease and the land ownership, Canmin now has 100% operating interest in the Namekara vermiculite project.
* A Letter of Intent for sale of the Company's vermiculite ore has been signed with a new business in Kampala set up for exfoliation of vermiculite for domestic Ugandan markets.
* A Market Representation Agreement has been signed with an agent granting non-exclusive marketing rights in Europe. Several orders have been arranged for full containers of approximately 20 tonnes each for purposes of testing the vermiculite, prior to the issuance of blanket purchase orders for the annual requirements.
* Development of the mining and processing facilities continues, with the testing of the fabricated initial processing equipment, construction of the processing and storage building, finalization of the installation of the water system, and installation of the power line to the site which has now received final approval from the Minister of Energy.
Following his recent trip to Uganda, the IBI president reported that "The Canmin team have done a commendable job in gaining the full support of the Uganda people and authorities and in advancing the project to this stage. Commercialization is nearly ready!"
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. The Canadian Unlisted Board ("CUB") records the trades, but 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 is currently being actively processed.
Third Quarter Financial Report
The Company's third quarter financial report has been filed on SEDAR, and can be reviewed on the web site thenewibi.com.
The operating expenses for the nine months of 2000 were $238,494, compared with $472,002 for the same period in 1999. The 2000 expenses include some $30,000 for legal, compliance, mailings and meeting costs relative to the 1998 and 1999 annual meetings held in September 2000. There was no annual meeting expense in the comparable period of 1999.
Proceeds from the Private Placement continue to fund the Uganda project.
Extension of Warrants
Because of delays in finalizing the mining lease and granting of relisting status, it has not been practical for holders of warrants from the 1999 rights offering to exercise them. Accordingly, the expiry date for exercise of these $0.06 warrants has been extended until January 31, 2001.
The proceeds from the exercise of the warrants will be used to fund the final capital costs for construction of premises and processing equipment for the commercialization of the Namekara vermiculite.
Further Opportunities in Uganda
As outlined by Mr. Hans Hansen at the recent AGM, many other mineral projects exist in Uganda. The Company is well positioned to capitalize on these opportunities because of its highly qualified management team, direct experience with the culture and economy of Africa, and credible relationships with the government investment and mining authorities.
A second project has been identified, and a feasibility study is expected to be scheduled in the first quarter of 2001, following start-up and commercialization of the Namekara vermiculite project. |
