| ||May 24, 2005|
MBMI Completes Alpha Property Acquisition
| ||MBMI RESOURCES INC. (MBR-TSXV) "MBMI" is pleased to report, that further to its news release of March 3, 2005, it has concluded the definitive joint venture agreement with Palawan Alpha South Resource Development Corporation (Alpha) under which MBMI can earn a major interest in the Alpha nickel property. The 3,277 hectare property is located in Palawan, Philippines and is adjacent to MBMI's Bethlehem nickel laterite property which is currently being drill tested. The agreement, which enables MBMI to hold an initial 60% interest in the joint venture, is subject to regulatory approval. |
Drilling and exploration was conducted during the 1970's by Pacific Metals Company (Pamco) of Japan, Olympic Mining and Development Corp. and its affiliates, and in 2001 by QNI of Australia. Evaluation of historic drill results and geological data on the Alpha property has allowed MBMI to identify primary drilling targets, contiguous with the current mining operations of Platinum Group's Toronto property which is totally contained within the Alpha property. An up to date National Instrument 43-101 technical report is being prepared.
The Joint Venture Agreement is structured in a series of phases to facilitate a cost effective exploration and development program. MBMI has made a US$30,000 "due diligence" payment and can maintain its interest in the joint venture by making a total of US$220,000 in property payments on a phased basis and by financing exploration and development costs through to production. Upon achieving "project financing status", MBMI may dilute Alpha to a net smelter royalty interest of 2.5%.
The acquisition of this project is a result of the Company's long term presence in Palawan Philippines, and its expertise in nickel laterites, and is part of MBMI's objective of becoming a supplier of high -grade nickel laterite material to the primary nickel consumers in Asia.
Mr. John Cook, (P.Eng.) is the qualified person as defined in National Instrument 43-101, and has reviewed the contents of this news release.
MBMI now maintains a major interest in seven nickel properties totaling 22,000 hectares in the Philippines, and also holds the rights to three Canadian gold projects.
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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