Mar. 3, 2010 (Filing Services Canada) -- IBI Corp. (IBI - TSX Venture), a junior international mining and investment company, reports that IBI's affiliate company, Grey Crown Resources Limited ("Grey Crown") currently a private integrated gold exploration company focused on Uganda, and owner of the Tira Gold Mine, has signed a definitive agreement (the "Agreement") regarding a property arrangement with Gold Fields Limited, through its affiliate, Gold Fields Metals BV of Amsterdam ("Gold Fields").
Under the terms of the Agreement, Grey Crown acquires a 100% interest in two properties in Uganda, which are contiguous to Grey Crown's mining lease lands, and on which certain initial gold exploration activity has already been conducted.
The new Agreement supplants the previous signed Letter of Intent for a proposed Definitive Option Agreement between Grey Crown and the Glencar Group ("Glencar") regarding Glencar's formerly owned, gold-focused 113-square-kilometre Makina Gold Project in southeastern Uganda.
Details of the proposed definitive agreement between Grey Crown and Glencar were reported in IBI's news release dated May 7, 2008 and Grey Crown's news release #101 dated July 24, 2008. Since then, a draft Definitive Agreement had been prepared dated February 5, 2009, and substantially agreed to by Glencar and Grey Crown.
Glencar management had advised that they considered the properties to have merit, but wished to focus their resources on Glencar's more advanced project in West Africa.
By agreement of the parties, certain elements of the arrangement between Grey Crown and Glencar had proceeded forward, notwithstanding that the final agreement had not been executed. These elements included:
* Receipt of Glencar's previous exploration data on the properties;
* Transfer of registration of Glencar's larger EL to name of Busitema Mining;
* Completion of supplementary ground geochemical exploration and sampling on the properties.
The Agreement between Grey Crown and Gold Fields regarding the Makina Gold Project follows the acquisition of Glencar in October 2009 by Gold Fields through a cash offer for, and the take-over of the entire issued share capital of Glencar.
Under the terms of the new Grey Crown Agreement with Gold Fields, all previous options and agreements have been consolidated and settled in consideration of certain Grey Crown shares for:
* the option agreement;
* an option for a 60% interest in the properties;
* an option for an additional 40% interest in the properties; and
* for Gold Fields to retain a carried interest in a 2% net smelter royalty ("NSR") residual.
These three option components were originally valued in the Letter of Intent as $700,000. The initial option was to be settled with shares at $0.50 each, and the subsequent options have been agreed to be settled by shares at $1.00 each. In total, 800,000 shares are being issued to Gold Fields, being approximately 5% of the issued capital of Grey Crown at this time. This is prior to Grey Crown's proposed transaction with Sereno Capital Corporation, and as outlined in Grey Crown's news release #109 dated February 24, 2010 and in IBI's news release of February 25, 2010, which creates a reverse-take-over of Sereno by Grey Crown, if the proposed transaction is completed.
Under the new Gold Fields Agreement, Grey Crown now owns a 100% interest in EL0438 (108 sq. km.) and EL 0071 (4.7 sq. km.).
EL0438 is contiguous to the Busitema mining lease to the west. This exploration license was renewed in the Busitema name effective March 2009, with an initial term of three years and two further two-year renewals. This registration into the name of Busitema avoided a cutback of 50% of the land area for the renewal by Glencar.
EL0071 is contiguous to the Busitema mining lease to the south. On closing of the Gold Fields transaction, this EL will be transferred to the name of Busitema, as a new EL, with an initial three-year term, and with two successive two-year renewals.
Brian Hester, Grey Crown's Qualified Person, met with Glencar in September 2008 at Glencar's offices in Dublin Ireland and received geological data and explanations concerning prior exploration work Glencar had completed on the two properties. Busitema has completed further exploration work on the properties, as outlined in Grey Crown's current NI 43-101 Technical Report, with what Grey Crown considers encouraging results.
The next exploration activity will be a program of shallow pits to the south on EL0071 designed to find extensions of gold mineralization already recognized on our mining lease.
Gold Fields Limited, which is based in Johannesburg, South Africa, reports that it is "one of the world's largest unhedged producers of gold with attributable production of 3.6 million ounces per annum from nine operating mines in South Africa, Ghana, Australia and Peru."
Gold Fields also says that it "has an extensive growth pipeline with both greenfields and near mine exploration projects at various stages of development," and that it has "total attributable mineral reserves of 81 million ounces and mineral resources of 271 million ounces."
Paul Sherwen, President and Chief Operating Officer of Grey Crown, made the following comments on this transaction: "Gold Fields has indicated to us that it intends to take a passive role in Grey Crown, and plans to concentrate its African activities on existing operations in South Africa and Ghana. However, it is anticipated that Gold Fields will benefit from the success and potential of Grey Crown going forward. Under this transaction, Grey Crown expects to develop a relationship with one of the world's major gold producers."
Sherwen added, "Acquisition of these properties constitutes an important strategic development for Grey Crown. Our assessment is that the properties involved could have significant potential, as they exhibit geological characteristics similar to Grey Crown's mining lease area."
The content of this news release has been reviewed and approved by Grey Crown's Qualified Person, Brian W. Hester, M. A. Sc., P.Eng, who is also IBI's Qualified Person for purposes of this news release.
IBI Corporation Overview
Uranium: Following a decision to focus on high-value minerals exploration and development in Uganda and East Africa, IBI sold its Namekara Vermiculite Mine in Uganda to Rio Tinto for US $5 million in March 2007, with final closing in March 2008. IBI subsequently has focused primarily on developing opportunities for the exploration and development of uranium in Uganda and Tanzania. IBI's prospective uranium land portfolio is comprised of approximately 2,882 square kilometres in Uganda and Tanzania. The Company is currently seeking to add more uranium lands.
The Company has prepared a proposal for the Government of Uganda for a private/public partnership between IBI Corporation and the Government of Uganda for the exploration and development of IBI's prospective uranium lands towards the goal of creating a nuclear electrical power generation program for Uganda.
Gold: IBI has accelerated its program of investing in promising gold opportunities, most notably through its current ownership position in Grey Crown Resources Limited. Grey Crown owns the Tira Gold Mine in Uganda and has also built a prospective gold lands portfolio of 1,242 square kilometres in the South East Uganda Greenstone Belt, which is considered to be an extension of the Lake Victoria Greenstone Belt where several prominent majors, including Barrick Gold and AngloGold Ashanti, are currently producing gold from proven reserves.
General: In February 2009, IBI entered into a joint venture agreement with Venus Capital Resources Limited in which IBI holds a 20% carried interest in 12 exploration license properties comprising 3,442 square kilometres, and regarding which, Venus is the project operator. The properties are contemplated for uranium, gold, and rare earth minerals exploration.
Reader Advisory: Statements in this document may contain forward-looking information. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, but not limited to, any potential outcomes resulting from the signing of the Agreement discussed in this news release. The reader is cautioned not to place undue reliance on this forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)
has reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Gary A. Fitchett CA - President and CEO
Tel: (905) 985-6510
Dennis Mellersh - Investor Relations
Tel: (416) 754-4454
Source: IBI Corporation (TSX-V: IBI) http://www.IBInvest.com
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