PROGRESS AT NAMEKARA VERMICULITE SITE/ FINANCING COMPLETED
TORONTO, ONTARIO -- Friday, March 30, 2001 #2001- 127
IBI Corporation (YIB-CDNX) (the “Company”), a junior mining and investment company,
updates the following:
Namekara Vermiculite, Uganda
Construction, infrastructure development, and equipment fabrication and testing is proceeding on schedule and is planned to be ready for commercial production in early May 2001.
A number of potential customers who had received test sample shipments of the Company's vermiculite and have provided letters and other expressions of intent are standing-by to receive the initial production from the mine and processing plant.
As a result of the material recovered in the drilling of nearby water wells on the land covered by the Company's mining lease, and the initial review of the drilling logs, it is clear that the recoverable Namekara vermiculite extends far beyond the specific area explored by the Company and quantified in the Company's technical report dated August 28, 2000, prepared by Kretschmar International Geoscience Corporation. This report established proven reserves in excess of 5 million tonnes of recoverable high grade vermiculite, enough for over 100 years of production at foreseeable production rates. The cross-section diagrams in the existing technical report clearly indicated that the vermiculite extended at depth beyond the boundaries of the explored area. Further exploration work will be carried out on these lands to quantify additional proven reserves.
President Yoweri Museveni of Uganda was recently re-elected into office for another five year term with a 70% plurality, thus ensuring continued stability in the country. Dr. Margaret Kigozi, Executive Director of the Uganda Investment Authority and an important supporter of the efforts of the Company's local subsidiary, Canmin Resources Limited, was quoted in the Kampala New Vision newspaper: “….the electoral process was investment friendly. Investors are very happy about the results, because it's now certain that the economic reforms and policies the government had put in place are to continue.”
The Company has sufficient funds on hand to complete the construction and initiate commercial production.
Completion of Private Placement
The private placement originally announced February 21, 2000 has now been completed and the Company has received the approval of CDNX to proceed to closing. On completion, 20,194,125 units were subscribed at $0.04 for a total consideration of $807,765.
20,194,125 warrants were issued and are exercisable at $0.045 within two years from the date of payment for the subscription. $6,187 has been received to date from the exercise of these warrants.
Gary A. Fitchett CA, President and CEO, expressed the gratitude of the board of directors to the many shareholders who participated in this financing which was critical for the restructuring of the Company and the initiation of the Company's world-class vermiculite project, and which demonstrated the support, loyalty, and strength of the shareholder base.
Closing of Private Placement
The closing of the private placement will take place on April 5, 2001 in Saint John, New Brunswick. Concurrently, an informal meeting will be held with all shareholders and their friends and associates from Eastern Canada at 7:00 p.m. at the Delta Hotel on April 5.
Common Shares Outstanding
The Company has 225,147,003 shares issued, before the issuance of the shares for the exercise of warrants from the rights offering.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
-- 30 --
For further information, please contact:
Gary A. Fitchett CA – President and CEO Adam Cegielski - Investor Relations
Tel: (416) 367-3274 Tel: (905) 279-2622
e.mail: ibicorp@think.iprimus.ca e.mail: newibi@on.aibn.com
http:// www.thenewibi.com |
