Ghana gold project acquisition completed
IBI Corp IBIC
Shares issued Feb 5 close $0.23
Wed 5 Feb 97 News Release
Mr Wade Crawford reports
The company has completed a share exchange agreement with the shareholders
of Kibi Goldfields International whereby IBI has acquired all of the
outstanding shares and warrants of Kibi in a one for one exchange for IBI
shares and warrants. IBI issued 18,908,384 shares, representing 12.94% of
the total outstanding shares of IBI after completion of the transaction,
and 611,968 warrants for acquisition. The warrants issued by IBI are each
exercisable into one share of IBI with $0.60 and up to and including June
30 1998.
The major shareholders of Kibi have agreed to escrow 1 million shares of
IBI on a pro-rata basis until Kibi's auditors can confirm Kibi has less
than $525,000 in total debt. If the total debt is greater than $525,000
then IBI may recapture a portion of these shares equal to the amount above
$525,000 divided by the transaction price per share, $0.26, up to a maximum
cancellation of 1,000,000 shares.
Mr David Meyers, President of Kibi, has joined the board of directors and
Mr Edward Lai and Mr Don Kam, directors of IBI, have joined the board of
directors.
Kibi Goldfields International owns 77% of the Kibi Goldfields Limited, a
Ghanaian company, which owns 100% of the Osino gold project within the
central district of Ghana, West Africa. The government of Ghana is a
partner with 10% interest and the other 13% is owned by two Ghanaian
financial institutions. A feasibility study report has been completed by
Minproc Engineering Pty Ltd and a technical review by MacKay & Schnelimann,
which indicate the project has eight years of reserves, based on a minimum
annual rate of production of 10,000 oz of gold per year. The mining
concession and lease cover an area of 49.95 sq km in the well known Osino
concession and the feasibility report also indicates further alluvial and
hard rock exploration potential.
Kibi Goldfields Limited, the Ghanaian subsidiary, has obtained US$5.3
million in debt financing from Ghanaian consortium of banks for the project
development cost to reach production. The debt will be repaid from the net
proceeds of production and neither IBI or any of its affiliates will be
required to guarantee the debt obligation. Equipment has been ordered using
this debt facility. An additional US$1.355 million will be required to put
the project into production of which IBI Corp is presently negotiating.
Production is expected within the next 12 to 14 months. |
