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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: maxncompany who wrote (41708)	6/2/2007 5:03:13 PM
From: Rocket Red	Respond to of 78431

The Corporation is in the business of acquiring, exploring and developing nickel laterite and nickel sulphide deposits, primarily in Brazil. In future, however, INV may expand operations outside of Brazil, include other metallic mineral projects and may enter into partnerships in order to fully exploit the production potential of its exploration properties. On September 24, 2004, as amended on December 16, 2004, the Corporation entered into an agreement (the “Santa Fé/Iporá Agreement”), pursuant to which INV was granted an option (the “Santa Fé/Iporá Option”) to acquire a 75% interest in the Santa Fé/Iporá properties, located in south-western Goiás State, in south-central Brazil, from a private Brazilian corporation Companhia Brasileira de Níquel (“Brasileira Níquel”). The Corporation’s cash position was not sufficient to meet all of INV’s planned cash expenditures in 2005 and, in particular, the option payments under the terms of the Santa Fé/Iporá Agreement. Accordingly, INV completed additional private placements in 2005 to raise the funds necessary to keep operating. In addition, the Corporation actively sought out a partner to facilitate the exploration and mineral property payments that would be necessary to acquire and properly explore the Santa Fé/Iporá properties. On June 27, 2005, INV entered into a Financing and Rights agreement (the “Financing and Rights Agreement”) with Teck Cominco Limited (“Teck”) that should result in the necessary funds being made available to the Corporation. On November 22, 2005, in accordance with the terms of the Financing and Rights Agreement, Teck elected to exercise its option to acquire its full 73% interest in INVI. On December 12, 2005, in satisfaction of all the then outstanding indebtedness of the Corporation to Teck, INVI issued to Teck such number of common shares of INVI as resulted in Teck holding 73% and the Corporation holding 27% of all issued and outstanding common shares of INVI as of such date. Accordingly, effective December 12, 2005, the Corporation no longer consolidates its former subsidiary INVI and now accounts for its investment in INVI on an equity basis. As a result, subsequent to December 11, 2005, the Corporation includes only its 27% equity interest in the earnings or loss of INVI. The balance sheet does not show the amounts spent by Teck