| ||June 06, 2007|
MBMI Executes Nickel Purchase Agreement
| ||June 06, 2007. MBMI RESOURCES INC. (MBR:TSXV) ("MBMI") ("the Company") is pleased to advise, that it has entered into an long-term Purchase Agreement for Nickel Ore in regards to a nickel project on Dinagat Island, Philippines held by a private Philippine mining company. MBMI will provide financial and technical services; marketing and transaction services with respect to the liquidation of the nickel products produced. The agreement term is for the life of the exploration, development, and exploitation of the property. |
MBMI will provide pre-export financing for the project which will be secured by the nickel product stockpiles. Subject to receipt of all requisite permits, and approvals, production is expected to commence during 2007. The counterparty to this agreement holds an MPSA (mineral production sharing agreement) over the property and is in process of securing all required permits to enable the commencement of production. Based upon the results of the 2007 program, MBMI's objective is to increase nickel product shipments in 2008.
The price the parties will receive for nickel product is calculated as a percentage of the LME price. The percentage varies according to the nickel grade and is calculated on the contained nickel content of the ore, on a dry basis. The agreement is subject to exchange and regulatory approval.
MBMI and its Philippine partners jointly control a 100% interest in eight additional nickel laterite projects in Palawan and Samar, Philippines covering an area in excess of 22,000 hectares where the objective is to develop a series of major suppliers of high-grade nickel products to the primary nickel consumers in Asia.
For further information:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991
Forward Looking Statement
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from either of the Companies' expectations are in Company documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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