Thursday, September 03, 2009
MBMI To Close $1,800,000 Loan Agreement
Vancouver, B.C., September 3, 2009 - MBMI Resources
Inc. (MBR:TSXV) ("MBMI") is pleased to announce that further to
its news release of July 27, 2009, and August 4, 2009, it intends to close
the second tranche of a secured loan. Up to $1,800,000 will be advanced to
MBMI in the form of a secured two year convertible debenture for up to
$900,000, and a secured two year bridge loan for up to $900,000 (the
"Loans"). The Loans will bear interest at 10% per annum,
compounded and payable monthly.
The principal amount of the debenture will be convertible into units of
MBMI at the option of the lenders at a fixed conversion price of $0.10 per
unit. The units will be comprised of a common share and one common share
purchase warrant. One warrant will entitle the holder to purchase one
common share of MBMI at a price of $0.13 per share for a period of 2 years
from closing.
As additional consideration for providing the Loans, the lenders are to be
issued up to 1,333,333 common shares of MBMI at a deemed price of $0.135,
and paid up to an $18,000 structuring fee pursuant to the Debenture.
Finder's fees will also be paid.
The net proceeds of the Loans will be used for exploration and development
of MBMI's Philippine nickel mineral properties, and for general corporate purposes.
Completion of the Loans will be subject to final approval of the TSX
Venture Exchange. The debenture and the common shares issued pursuant to
the Loans will be subject to resale restrictions for a period of four
months from the closing date under applicable securities legislation.
MBMI Resources Inc. (TSX Venture symbol: "MBR") is a
Canadian-based mining company focused on the exploration and development of
nickel mineral properties in the Philippines. MBMI and its Philippine
partners have an interest in nine nickel laterite projects in the
Philippines, covering an area greater than 22,000 hectares. MBMI's
objective is to become a major supplier of high-grade nickel products to
primary industrial consumers in Asia. For further information, please
contact MBMI Resources Inc. Investor Relations Toll Free: 1-877-399-1991 or
604-683-1991 or visit MBMI's website at www.mbmiresources.com
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
Further Information
For further information relating to the Company or this release, please
refer to the Company's website at www.mbmiresources.com or contact Investor Relations at
1-877-399-1991 or mbr@mbmiresources.com.
Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release may contain forward-looking information including but not
limited to comments regarding the timing and content of upcoming
financings, work programs, geological interpretations, receipt of property
titles, potential mineral recovery processes, etc. Forward-looking
information includes disclosure regarding possible future events, or
conditions or results of operations that is based on assumptions about
future economic conditions and courses of action, and therefore, involves
inherent risks and uncertainties. Although management has a reasonable
basis for the conclusions drawn, actual results may differ materially from
those currently anticipated in such statements.
You can also view this News Release on our website
at:
http://www.mbmiresources.com/s/NewsReleases.asp?ReportID=362216
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