Mar. 29, 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, is doing a short-term private placement for interim financing purposes, and has announced terms and a schedule for a major financing related to the proposed transaction with Sereno Capital Corporation ("Sereno")
As previously announced, Grey Crown is currently in the process of completing documentation and satisfying certain conditions concerning the proposed transaction with Sereno, a TSX-Venture issuer, a process by which, if completed, it is planned that Grey Crown would do a reverse takeover of Sereno. As the resulting issuer, Grey Crown would be listed on the TSX Venture Exchange. Although possibly completed sooner, the deadline for closing the proposed transaction is May 15, 2010.
The Grey Crown short-term interim placement is in the form of a convertible debenture: the deadline to commit and subscribe is 5:00 pm Eastern Time on April 2, 2010. This placement is available to shareholders and associates of Grey Crown Resources Limited and IBI Corporation.
Terms of Short-Term Convertible Debenture
* Convertible into Units of one common share and one warrant, at the
option of holder at any time up to maturity, at Cdn$0.50
* Interest at 8% per annum, payable quarterly
* Due October 31, 2010
* Warrant exercisable at $0.60 for one year
* Total placement is $375,000, of which $175,000 has been subscribed and
paid to date
* Minimum subscription $10,000
One of the conditions of completing the proposed transaction with Sereno is that Grey Crown is required to raise a minimum of $2.5 million in private placements. It is anticipated this major financing will be completed with institutional investors in Europe. Grey Crown held preliminary meetings with a number of these potential institutional investors at the recent PDAC Convention and Trade Show in Toronto, with positive response.
As part of arranging the major financing with institutional investors, Paul Sherwen and John Anderson of Grey Crown will be participating in a series of presentation meetings in a European Road Show during the week of April 11. Meetings will be held in Paris, Zurich, Geneva, Luxembourg, and London.
Major Financing Private Placement Terms
* Planning on raising $5 million
* Will be sold as Units, at $0.50
* One warrant per Unit, exercisable at $0.75 for first year and $1.00 for
* The funds will be held in trust until closing of proposed transaction
with Sereno; closing of the major financing private placement will take
place the day before closing of Sereno reverse takeover, and the start
of public trading.
Interested parties should contact the Company for further details.
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 anticipated financing regarding the proposed transaction with Sereno Capital Corporation, and 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.
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For further information, please contact:
Gary A. Fitchett CA - President and CEO
Tel: (905) 985-6510
Dennis Mellersh - Investor Relations
Tel: (416) 754-4454
#2010 ? 360
Source: IBI Corporation (TSX-V: IBI) http://www.IBInvest.com
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