FSC / Press Release
IBI'S AFFILIATE COMPLETES PURCHASE OF TIRA GOLD MINE
Toronto, Ontario CANADA, August 27, 2007 /FSC/ - IBI Corp. (IBI - TSX Venture), a junior international mining and investment company, reported today that its affiliate company, Grey Crown Resources Limited ("Grey Crown"), has completed its purchase of a 100 percent interest in Busitema Mining Cie Ltd. ("Busitema"), located in Uganda.
Busitema owns the producing Tira Gold Mine ("Tira Mine") and its associated gold exploration projects, the Tira Exploration Project and the Ammonikakinei Exploration Project, both comprising 30 square kilometres.
In making the announcement, Gary A. Fitchett, president and CEO of IBI Corporation, and chairman and CEO of Grey Crown, explained that the Tira Gold Mine Project, which is situated in the Busia region of Uganda, is within the geologically gold-bearing structure known as the Lake Victoria Greenstone Belt. The Greenstone Belt is host to a number of major international gold companies in neighbouring Tanzania, where Barrick Gold and other majors are producing gold from approximately 37 million ounces of proven gold reserves within a resource which is reported to contain as much as 60 million ounces of gold.
Grey Crown's Tira Gold Mine Project, which has been described as being on-trend with these Tanzanian proven reserves, is currently an open pit mining operation extracting visible gold deposited within granite veins.
Discussing the acquisition, Paul Sherman, president and COO of Grey Crown, and managing director of Busitema said, "This acquisition by Grey Crown represents a notable opportunity for the Tira Gold Mine Project to realize its full potential. Our development program for the Tira Mine places a high priority on the determination of mineable reserves within our lease area. Because of the unique and complex geology of the Tira Gold Mine Project we believe that innovative geological and engineering methods will play a role in confirming the strength of our mineable reserves. In addition to establishing reserves, an equally high priority will be expanding gold production through a refurbishing program that will include the physical plant as well as mining and processing equipment, personnel, and mine engineering. Based on our experience with this project, and on the initial assessments of geology consultants, the improved production processes are expected to be part of the geological profiling process to assess reserves potential."
In addition to his position with Grey Crown, Mr. Sherwen is Chairman of Uganda's Chamber of Mines. He is also currently chairing a special committee within Uganda's Presidential Investors' Roundtable, which was formed at the request of Uganda President Yoweri Museveni to identify further steps Uganda should take "to attract more investment and encourage the growth of domestic investment." Mr. Sherwen was personally invited to join the Investors' Roundtable by president Museveni.
IBI has a minimum ownership position of 20 percent in Grey Crown and, thereby a 20 percent interest in Busitema, which includes the Tira Gold Mine Project, the Tira Gold Exploration Project and the Ammonikakinei Gold Exploration Project; and in any future gold or other projects undertaken by Busitema.
Under the commercial arrangements between IBI and Grey Crown, IBI also has an effective 36 to 40 percent interest in any financial proceeds forthcoming from gold developments or transactions relating to IBI's Ibanda Gold Project and the Company's Busia Gold Project, comprising a total of 920 square kilometres. Moreover, Grey Crown will be assuming the exploration and development costs related to IBI's gold projects.
Speaking about IBI's overall high-value-minerals strategy in Uganda, Mr. Fitchett commented, "IBI's continuing operations as an energy minerals company are independent of Grey Crown, and currently comprise IBI's 100 percent ownership of the Lunyo Uranium Project, the Mbale Uranium Project, and the Mbende Uranium Project, together totalling almost 2,000 square kilometres in three distinct geological areas of Uganda."
"IBI has an eight-year history of accomplishment in Uganda, and the Company feels very comfortable operating in this country. Our success in Uganda was achieved within the framework of an excellent relationship with the Government of Uganda - a government that is providing a stable political and regulatory environment. Now strongly committed to both gold and the nuclear energy minerals sector, IBI looks forward to an accelerated phase of exploration and development. With quality gold and uranium projects and a strong financial underpinning for both IBI and Grey Crown, we are anticipating a rewarding future in Uganda," Mr. Fitchett said.
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, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on this forward-looking information.
The TSX Venture Exchange has not 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 Dennis Mellersh - Investor Relations
Tel: (905) 985-6510 Tel: (416) 754 - 4454
e.mail: G.Fitchett@IBInvest.com e.mail: D.Mellersh@IBInvest.com
http://www.IBInvest.com
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Source: IBI Corporation (TSX-V: IBI) http://www.IBInvest.com
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