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MBMI Resources Inc. Closes Private Placement

Markham, Ontario–(Newsfile Corp. – July 20, 2018) – MBMI Resources Inc. (NEX: MBR.H) (the “Company” or “MBMI”) is pleased to announce the closing of its previously announced private placement of 8,000,000 common share units (“Units”) at a price of $0.05 per Unit for aggregate gross proceeds of $400,000 (the “Private Placement”). Each Unit consists of one common share in the capital of the Company and one common share purchase warrant. Each warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.05 per share for a period of one year from the date of issuance. The closing of the Private Placement remains subject to final acceptance by the TSX Venture Exchange.

In connection with the Private Placement, the Company paid certain finder a cash commission in the amount of $28,000, representing 7% of the gross proceeds raised pursuant to the Private Placement. The proceeds of the Private Placement will be used to finance the Company’s continuous efforts to reinstate the Financial and Technical Assistance Agreement with the Government of Philippines with respect to the Company’s Palawan nickel properties, and for general working capital.

All securities issued pursuant to the Private Placement are subject to a four-month hold period pursuant to the applicable securities laws with an expiry date of November 21, 2018.

About MBMI Resources Inc.

MBMI Resources Inc. is a Canadian-based mining company which operates 7 nickel mineral properties in the Philippines, which include the Alpha Property, Bethlehem Property and Northern Rio Tuba Property located in Palawan Philippines covering an area of 12,560 hectares (collectively, the “Palawan Properties”), and the Borongan-Maydolong Property, Gen. Mcarthur-Llorente Property, Balangiga-Giporlos Property and Homohon Island Property in Samar, Philippines covering an area of 10,150 hectares (collectively, the “Samar Properties”).

The Company’s principal properties, the Palawan Properties, have been subject to a dispute (the “FTAA Dispute”) which led to a decision by the Office of the President of the Philippines on April 19, 2011 (the “OP Decision”) that cancelled a Financial and Technical Assistance Agreement (the “FTAA”) granted in April 2010 for the Palawan Properties. The FTAA, if reinstated, would allow large-scale exploration, development and utilization of minerals on the Palawan Properties.

Through a series of transactions from September 2012 to March 2014 involving the sale of the company’s ownership in the operating companies (the “Operating Company“) that own and control the Palawan Properties and their respective holding companies, the Company’s ownership in the Palawan Properties have been sold to DMCI Mining Corporation, a Philippines based mining company (the “Purchaser”) for an aggregate purchase price of US$25.2 million (the “Sale Transactions”). The closing of Sale Transactions is subject to a number of closing conditions which include, among other things, the reinstatement of the cancelled FTAA.

As a result of the Sale Transactions and the FTAA Dispute, the Company has suspended its exploration and development operations in all of its properties to focus its efforts and resources on the reinstatement of the cancelled FTAA in order to conclude the Sale Transactions.

On December 9, 2015, the First Division of the Philippine Supreme Court issued a favourable decision (the “SC Decision”) declaring null and void the decision of the Philippine Court of Appeals which affirmed the OP Decision without prejudice to any other appropriate remedy the parties may take against each other. It is important to note, however, that while the SC Decision is the final court decision with respect the FTAA Dispute, it is not a direct ruling with respect to the re-instatement of FTAA that would allow the Company to meet the closing conditions of the Sale Transactions. Therefore, following the SC Decision, the Operating Companies have commenced work on the documentation required to re-engage the Office of the President regarding the reversal of the OP Decision and reinstatement of the FTAA pursuant to the SC Decision. Since there is no assurance that the Office of the President of Philippines will reinstate the FTAA, the Company, the Operating Companies and the Purchaser are concurrently evaluating other recourses including, but not limited to, binding arbitration proceedings in accordance with the dispute resolution mechanism set out in the FTAA as sanctioned by the SC Decision.

Disclosure regarding forward-looking statements

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice.

For more information, please contact:

Joseph Chan, Interim CEO
Phone: (647) 299-9203
Email: [email protected]

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.

 

Disclaimer: This is an unedited and minimally reviewed public mining company press release originally published at http://www.newsfilecorp.com/release/36106/MBMI-Resources-Inc.-Closes-Private-Placement. We have linked to our knowledge base articles from within the content of this release in order to help explain some of the terminology used and provide continuity from previous and related news coverage. You can access more in-depth mining company project reviews on our site, as well a knowledge base of articles on mineral exploration, mining and geology-related topics.

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