Apr. 20, 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 announced final closing on the definitive agreement (the "Agreement') regarding a property arrangement with Gold Fields Limited, through its affiliate, Gold Fields Metals BV of Amsterdam ("Gold Fields").
Details of the signing of the definitive agreement were announced in Grey Crown and IBI news releases of March 3, 2010. 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 a 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.
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 ("Sereno"), as outlined in Grey Crown's news release dated February 24, 2010, which would create a reverse-take-over of Sereno by Grey Crown, if the proposed transaction is completed.
Under the new Agreement with Gold Fields, Grey Crown now owns a 100% interest in EL0438 (108 sq. km.) and EL 0071 (4.7 sq. km.).
In commenting on the transaction, Grey Crown's chairman and CEO, Gary A. Fitchett, said, "Grey Crown is very pleased to have Gold Fields as a shareholder as the Company moves towards anticipated public status. Grey Crown believes it is creating a compelling regional opportunity for gold exploration and potential gold development in southeast Uganda, particularly as most of the Company's lands are located in the southeast Uganda Greenstone Belt extension of the Tanzanian Lake Victoria Greenstone belt, where majors such as Barrick Gold are currently producing gold."
The next exploration activity for Grey Crown is anticipated to be a program of shallow pits to the south on EL0071, designed to find extensions of gold mineralization already recognized on its mining lease.
Gold Fields Limited, which is based in Johannesburg, South Africa, notes in its 2009 Annual Report 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 has an extensive growth pipeline with both greenfields and near mine exploration projects at various stages of development. Gold Fields has total attributable mineral reserves of 81 million ounces and mineral resources of 271 million ounces."
The content of this news release has been reviewed and approved by Brian W. Hester, M. A. Sc., P.Eng, Qualified Person for Grey Crown Resources and acting as 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 final closing of the Definitive Agreement with Gold Fields, 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
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Source: IBI Corporation (TSX-V: IBI) http://www.IBInvest.com
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