IBI Corporation Comprehensive Update
TORONTO, ONTARIO--IBI Corporation (YIB-CDNX) (the "Company"), a junior mining and investment company, provides the following information update following the listing today of its common shares on Tier 3 of the Canadian Venture Exchange ("CDNX").
Gary A. Fitchett C.A., President and CEO, advises that "the plan of restructuring to restore the Company to good financial and operational health was adopted in the fall of 1999 and is now substantially completed. The listing on a recognized exchange was the last significant step to be finalized. The focus initially as the Company proceeds to the next phase will be on the starting of commercial production at the 100% owned world-class Namekara Vermiculite Mine in Uganda and the building of shareholder value.
The prospective strength of the Company was seen to be the world-class project, the public company status, and the extensive and committed shareholder base. The synergy of these factors has now been established, particularly in meeting the listing criteria."
Regulatory
The Company has achieved a high standard of timely and continuous disclosure, including up-to date audited financial statements, information circular, and annual shareholders' meeting. The listing review and the required standards provided additional comfort as to the Company's technical reports and capital foundation.
The Company's objective will be to qualify for and attain Tier 2 status at an early date, in order to benefit from the enhanced credibility this will bring in the investment community.
It is expected that the next annual shareholders' meeting for year 2000 will be held in the spring of 2001, probably in April.
Governance
As the start of the restructuring, a new and experienced board of directors was appointed with appropriate independent directors and representatives of the shareholders.
Financial
The financial base of the Company and its balance sheet have been strengthened through the sale of the Memex investment for $200,000, the settlement and negotiated forgiveness of debts totalling $470,000, the significant cutting of the corporate overhead structure, and repricing management options upwards. New capital was raised as seed capital and private placement of $825,000 and a substantial amount has been invested into the ground to initiate the vermiculite project. The Company now has in excess of $300,000 for working capital and to complete the project.
Warrants are being exercised from the 1999 rights offering, and there are approximately 13,500,000 available to be exercised imminently at $0.06 - a total of some $800,000. Furthermore, the warrants from the private placement will be available to be exercised over the next 1-2 years at $0.045 - a total of an additional $850,000 which will also be available for working capital and new projects.
During the past year there has been discussion about a possibility of a consolidation of the share capital. This matter will be reviewed by the board prior to the next annual meeting, but feedback from many shareholders and brokers is that they would not be in favour of such action. The fundamentals of the Company would remain the same under either scenario. The typical advantage put forward is that the Company would be more attractive to institutional investors which often have fixed criteria. On the other hand, the Company's shareholder base, and indeed its strength, is the individual investor.
Namekara Vermiculite Project
Detailed investigation, exploration and environmental assessment of the Uganda project had been completed in prior years.
After completion of a new focused business plan, engagement of management staff, and restoration of the property, work immediately began on opening the mine, constructing infrastructure such as access roads, water borehole, and hydro supply, and producing customer samples. Relevant land was acquired, equipment fabricated and a mining lease granted by the Minister of Mines, thus securing 100% ownership in this world-class project for the Company.
An independent technical report established that the first phase of the project has reserves of recoverable vermiculite in excess of 5 million tonnes - enough for over 100 years of production at planned production rates.
A commission agent has been engaged in Europe; letters of intent and interest have been received from prospective customers in the Middle East, Europe, and the United Kingdom.
A production building is about to be constructed and equipment installed which will provide the capability to start commercial production in the spring of 2001.
Further details of the launch of the project was covered in the January 2001 article in the prestigious international publication, Industrial Minerals, and may be found on the Company's website, thenewibi.com , under the menu item, The Bukusu Project.
Bukusu Phosphate Project
Research and testing at independent laboratories and the soil science department at the University of Kampala has identified technical problems with the existing phosphate resource for the intended applications. However, treatment methods are under investigation with encouraging early results. For the time being, this project is being deferred.
Communications and Investor Relations
The Company's website, thenewibi.com , has been the cornerstone to the communications with the shareholder base. The President's Page is a month end scheduled update and discussion of current accomplishments and activities.
Adam Cegielski has joined to Company to focus on continuous communications and dialogue with interested parties.
A comprehensive Investor Relations Kit with samples of the Namekara vermiculite is now available to provide detailed background data for current and prospective shareholders and brokers.
Common Shares Outstanding
The Company has 204,952,878 shares issued, before the closing of the private placement announced February 21, 2000 and updated in the press release dated December 27, 2000.
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FOR FURTHER INFORMATION PLEASE CONTACT :
Gary A. Fitchett CA - President and CEO
Adam Cegielski -- Investor Relations
(416) 367-3274 / (905) 279-2622
(905) 985-1249
ibicorp@think.iprimus.ca
www.thenewibi.com
INDUSTRY : MNG
SUBJECT : ECO |
