MONTREAL,
QUEBEC--(Marketwire - June 2, 2009) - MDN
Inc. ("MDN") (TSX:MDN) announces the closing of a transaction
(the "Transaction") with the shareholders of Les Mineraux Crevier Inc. ("MCI")
and its debenture holders for the acquisition of up to 75% of the
shares of MCI. MCI owns a property with a NI 43-101 niobium and
tantalum resource (the "Resource") located in the Lac St-Jean
area of Quebec, about 80
km north of St-Felicien.
As of May 25, 2009, and in compliance with regulatory authorities, MDN
has posted on SEDAR (www.sedar.com) the 43-101 report on the Resource.
------------------------------------------------------------------ 43-101 Millions of Ta2O5 Nb2O5 Ta2O5 Nb2O5 values metric tonnes g/t g/t kg kg ------------------------------------------------------------------ Indicated(i) 25.75 199 1,860 5,124,250 47,895,000 ------------------------------------------------------------------ Inferred(i) 16.88 204 1,620 3,443,520 27,345,600 ------------------------------------------------------------------ (i) With a cut-off grade of 0.1% niobium.
Under the terms of the Transaction,
MDN has acquired 28.75% of the shares of MCI as well as the entire $1.5
million in convertible debentures, for a total amount of $2,325,000. This
first stage in a major investment in Quebec was funded from cash
currently held by MDN.
In addition, the Transaction also calls for MDN to invest up to $7.5
million over three years to fund a feasibility study on developing the
Resource. Over the same period, MDN may raise its ownership in MCI up
to 75%, in return for a further $3.5-million investment.
At a time it considers appropriate, and taking account of financial
market conditions, MDN will determine the best approach toward
financing its investment, totalling $13.5 million, keeping in mind that
it currently holds the surplus cash required to fulfil its growth
strategy and the MCI commitment.
MDN now holds 28.75% of MCI. The other partners are: IAMGOLD (37.5%),
Dresden Mining Inc. (11.25%) and MCI management (22.5%).
IAMGOLD, MDN and MCI management will each have two members on the MCI
board of directors. IAMGOLD owns and operates a nearby niobium mine and
processing plant, Niobec, which produces ferro-niobium.
"We are ready to get down to work with
the various engineering companies, and we have received proposals
covering initial work on the feasibility study," MCI President
Serge Bureau stated. "The closing of the Transaction with MDN
enables us to move ahead on several parts of the feasibility study and
to focus our efforts on developing the project."
The first stage of the feasibility study, a scoping study, will go
forward in the coming days. A drilling and trenching program is
expected to start in July to convert the Resource from the
"indicated" to the "measured" category. Metallurgical
tests will be conducted over the next few months to help in the design
of the processing plant.
"Investing in MCI enables MDN to move fully into the area of rare
or strategic metals used mainly in steel, electronics, aeronautics and
aerospace," added Paul-A. Girard, MDN President and CEO.
"Demand for niobium and tantalum oxides remains strong, and world
production is barely adequate."
MDN is a mining exploration and development company, and we continue to
work on developing its projects in Tanzania and remain active
in the search for new business opportunities that can raise shareholder
value, whereas MCI, which now will have adequate financial resources,
will pursue its goal of reaching a decision on putting the Resource
into production.
All technical information in this release has been reviewed by Marc Boisvert, Engineer and Vice President, Exploration
of MDN, serving as a qualified person in compliance with National
Instrument 43-101.
Forward-looking statement
All statements in this release, other than statements of historical fact,
that address events or developments that the Company expects to occur,
are forward looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in
forward looking statements. Factors that could cause the actual results
to differ materially from those in forward-looking statements are
discussed in greater detail in the Company's most recent Annual
Information Form filed on SEDAR, which also provides additional general
assumptions in connection with these statements. Investors and others
who base themselves on the Company's forward-looking statements should
carefully consider the factors mentioned in the Annual Information Form
as well as the uncertainties they represent and the risk they entail. The
Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this press release should not be
unduly relied upon. These statements speak only as of the date of this
press release.
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