| ||March 03, 2005|
MBMI Signs Agreement on Additional Nickel Property
| ||MBMI RESOURCES INC. (TSXV:MBR) "MBMI" announces that it has entered into a Memorandum of Agreement (MOA) 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. The MOA, which enables MBMI to hold an initial 60% interest in the joint venture, is subject to completion of a definitive joint venture agreement, Board of Director and regulatory approval. |
Drilling and exploration conducted during the 1970's by Pacific Metals Company (Pamco) of Japan, Alpha and its affiliates, and in 2001 by QNI of Australia, resulted in a resource profile which may not conform to current NI-43-101 parameters. Evaluation of historic drill results and geological data has, however, enabled MBMI to identify primary drilling targets on this property.
The MOA contemplates completing a Joint Venture Agreement which is to be structured in a series of phases to facilitate a cost effective exploration 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 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 maintains a major interest in three nickel properties in the Philippines, and also holds the rights to three Canadian projects; the McMillan gold mine property in Espanola, Ontario, the Copper Prince Cu-Ni-Au/PGM property in Sudbury, Ontario, and the Squall Lake, Manitoba gold project.
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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