IBI Corp -
Status of projects and current activities
IBI Corp
IBIC
Shares issued 177,552,731
1998-05-28 close $0.095
Thursday Jun 25 1998
Mr. Olav Svela reports
IBI Corp. acknowledged that the Canadian Dealing Network (CDN) terminated
the company's quotation on the CDN system on May 29, 1998. The common
shares will continue to trade without quotation and trades will continue to be
reported to the CDN system. The company believes that CDN's decision to
terminate IBI's quotation reflects the company's lack of experience in managing
the external communications of a public company and insufficient disclosure by
IBI, particularly as this might relate to previously announced projects that were
subsequently cancelled or put on hold.
Accordingly, for the sake of good order and to clear up any misconceptions
associated with its recent activities, the company has provided the following
summary of the status of previously announced projects.
Uganda Phosphate/Vermiculite Project
IBI wishes to clarify that it has only been granted the right to acquire a 70 per cent
interest in a phosphate/vermiculite property in Uganda, subject to monthly cash
payments totalling $80,000 and committing additional funds of $1.2-million prior
to August 25, and thereafter an additional $2.76-million. The company has paid
$51,000 covering its cash commitments to date.
IBI recently appointed a geological consultant who, from May 4 to 9, visited its
phosphate/vermiculite project in Uganda. Following receipt of the report from the
geologist, Dr. Ulrich Kretschmar, the company will issue a press release outlining
his conclusions.
La Luz Gold Project
Drill cores from the original exploration were re-assayed by XRAL, an
independent laboratory in Toronto. XRAL is a division of GSC Canada, a
subsidiary of Societe General de Surveillance. The drill cores revealed lower
grades than previously indicated by the prior owner. As a result, IBI cancelled the
proposed phase one drilling program and the project is on indefinite hold. The
letter of intent may now be cancelled by either party.
Terri Zone Gold Property
IBI maintains the right to acquire the right to earn a 36 per cent interest in the Terri
zone gold property near Kirkland Lake, Ontario but has not exercised this right to
date. The 1998 drilling program previously announced did not commence.
Emerald Forest Project
The Emerald Forest project has been approved by the Costa Rican government
as a qualified teak plantation. IBI owns the property in freehold form and can thin
the forest, thus harvesting a portion of the teak trees, at any time it wishes. The
forest harvest is on hold currently, pending the end of the rainy season and the
finding of a suitable logging contractor/timber buyer.
Kibi Gold Project
The Kibi project is an alluvial gold project in Ghana. Kibi Goldfields, 77 per cent
owned by IBI, owns a newly built $4-million (U.S.) dredge which has been
transported to the project site, approximately 50 kilometres north of Accra, and is
undergoing assembly. Financing for the dredge has been secured by a consortium
of local and government banks in Ghana, including Agricultural Development
Bank, Merchant Bank (Ghana) and Ghana Commercial Bank. IBI currently is
seeking $1.3-million to provide operating capital prior to commencing commercial
production. An independent geological consultant, Ulrich Kretschmar, has been
hired and will visit the property later this month to provide an up to date
assessment of the property's potential.
In addition to the IBI holding, the consortium of banks which financed the dredge
holds 13 per cent and the government holds 10 per cent of Kibi Goldfields.
Equity Growth Systems
Due to adverse tax implications, the Equity Growth Systems acquisition project
was terminated.
Guyana Timber Concession
A 600,000 acre Guyana timber concession is still being negotiated and no formal
agreement has been reached.
Haiti Forestry Project
IBI has cancelled the Haiti forestry project because it has not received suitable
assurances that the proposed government grants would be available.
Related Matters
IBI will not use the Internet for the dissemination of company news for the next six
months, which will allow the company time to formalize its external
communications system.
The company has commissioned an independent geological report for the
phosphate deposit it has acquired in Uganda. Ulrich Kretschmar, a consulting
geologist, visited the property in early May of this year and his report and
recommendations for the development of the property are expected later this
month. Preliminary estimates indicate that $4-million (U.S.) is required to
commence production and the company will seek to raise that amount.
IBI has not applied to any stock exchange for a listing and the normal course
issuer bid previously considered has not been implemented
It is also appropriate to note that, from time to time during the year, the company
included a statement showing the shares outstanding in each news release. On
examination, it is now apparent that the number of shares given was frequently
incorrect. In future, this will be handled with precision.
In light of the concerns expressed by the Canadian Dealing Network, the
company has appointed Hume, Kieran Inc. as its investor relations counsel.
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