Sep. 27, 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 that Sereno Capital Corporation ("Sereno") a capital pool company ("CPC") listed on the TSX-Venture Exchange, has terminated its arrangements with Grey Crown Resources Limited concerning the previously announced proposed transaction with Grey Crown.
The Sereno news release stated, "...the parties were not able to satisfy the closing conditions of the proposed qualifying transaction with Grey Crown Resources Limited and that the proposed qualifying transaction is formally terminated."
Under the terms of the proposed transaction, Grey Crown was to have been Sereno's Qualifying Transaction ("QT") as that term is defined under TSX-Venture regulations regarding capital pool companies. The proposed transaction arrangement with Sereno required that Grey Crown raise $2.5 million in financing within a specified timeframe.
Grey Crown would then have proceeded to do a reverse takeover of Sereno and would have become a listed issuer on the TSX-Venture Exchange. However, because of unfavourable market conditions for its private placement offering, Grey Crown was not able to raise all of the required financing within the agreed timeframe.
Grey Crown Resources is currently developing alternative approaches to financing and is continuing its efforts to achieve public company status. An update will be forthcoming.
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 1,142 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 held a 20% carried interest in 12 exploration license properties (since reduced to eight licenses), now comprising 2,258 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 termination of the proposed transaction between Sereno Capital Corporation and Grey Crown Resources Limited, 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
Source: IBI Corporation (TSX-V: IBI) http://www.IBInvest.com
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