Tuesday, August 04, 2009
MBMI Completes $1,000,000 Loan Agreement
Vancouver,
B.C., August 4, 2009 - MBMI Resources Inc. (MBR:TSXV) ("MBMI")
and GC-Global Capital Corp. (GDE.A:TSXV) ("Global Capital") are pleased to announce that
further to MBMI's news release of July 27, 2009, the first tranche of a
$3,000,000 secured loan (the "Loan") has closed. Global Capital
has advanced $1,000,000 to MBMI in the form of a secured two year
convertible debenture (the "Debenture") for $500,000 and a
secured two year bridge loan (the "Bridge Loan") for $500,000.
The Loan bears interest at 10% per annum, compounded and payable monthly.
The principal amount of the Debenture is convertible into units of MBMI at
the option of Global Capital at a fixed conversion price of $0.10 per unit.
The units are 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 Bridge Loan, Global Capital
was issued 1,600,000 common shares of MBMI at a deemed price of $0.0625 and
paid a $10,000 structuring fee pursuant to the debenture. Finder's Fees of
$70,000 were paid to a third party.
The net proceeds of the Loan shall be used for exploration and development
of MBMI's Philippine nickel mineral properties, and for general corporate
purposes.
"The Global Capital team recently returned from visiting the MBMI
nickel operations in the Philippines and were very impressed with the
company and their management team. We are pleased to be able to provide
financing to MBMI," said Global Capital's C.E.O., Jason Ewart. He
added, "MBMI has invested significant funds into infrastructure and
development of their nickel projects over the last few years and these
funds will enable the restart of nickel material shipping operations."
Closing of the Debenture portion of the Loan is subject to a number of
conditions including final approval of the TSX Venture Exchange. The
Debenture and the common shares issued pursuant to the Bridge Loan will be
subject to resale restrictions for a period of four months from the closing
date under applicable securities legislation.
MBMI and Global Capital intend to close a second tranche under this loan
agreement, which will see Global Capital advance up to an additional
$2,000,000 on the same terms and conditions as set out above, with the
issuance of up to 3,200,000 common shares of MBMI as additional
consideration to Global Capital, subject to the approval of the TSX Venture
Exchange.
About MBMI Resources Inc.
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
About Global Capital
Global Capital is a merchant bank, which provides bridge loan services
(asset back/collateralized financing), to companies across many industries
such as oil & gas, mining, real estate, manufacturing, retail,
financial services, technology and biotechnology. For further information,
please contact Jason G. Ewart at (416) 488-7760 or visit Global's website
at www.gcglobalcapital.ca.
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.
The TSX Venture
Exchange has not reviewed and does not take responsibility for the 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=358642
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