| ||January 31, 2006|
MBMI Completes 2,414,500 Units Private Placement
| ||MBMI RESOURCES INC. (MBR-TSXV) "MBMI" reports that further to its news release of December 2, 2005, and December 19, 2005, it has closed the second and third tranches of a non-brokered Private Placement financing of 132,500 Units and 580,000 Units respectively at $0.40 per Unit for gross proceeds of $285,000. |
The Company has now issued (in three tranches) a total of 2,414,500 Units for gross proceeds of $965,800. Each Unit consists of one Common Share and one half (1/2) Common Share Purchase Warrant. Each full Warrant will entitle the holder to purchase one Common Share for a period of 2 years at a price of $0.45. The warrants have an accelerated exercise provision such that, after expiry of the hold period, if the 20 day weighted average trading price of the Company's common shares for any 20 consecutive trading days is greater than $0.90, then the Company may provide notice that the warrants will expire 30 days following such notice. The securities issued, pertaining to the second and third tranches, are subject to a four month hold period which expires May 3, 2006 and May 25, 2006 respectively.
The net proceeds shall be used for exploration and development of the Company's Philippine nickel mineral properties, and for general corporate purposes.
MBMI has an interest in four Philippine nickel properties in the province of Palawan and is finalizing the acquisition of four additional nickel projects in Samar province, Philippines. The Company's objective is to become a major supplier 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
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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