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Message: MBMI Arranges Financings

MBMI Arranges Financings

posted on May 25, 2009 03:24PM
May 25, 2009
MBMI Arranges Financings
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2009) - MBMI RESOURCES INC. ("MBMI" or the "Company") (TSX VENTURE:MBR) reports that it has executed a Term Sheet pertaining to a secured 2 year convertible debenture for up to $1.5 million and a 2 year bridge loan for up to $1.5 million for a total of up to $3 million.

The principal amount of the Debenture is convertible into Units of MBMI at the option of the Lender at a fixed conversion price of $0.09 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 at a price of $0.13 per share for a period of 2 years from the date of conversion. Interest of 10% per annum will be payable, and MBMI will issue to the Bridge Loan Lenders up to 4,800,000 common shares on closing.

Closing of the financing is subject to completion of due diligence by the Lender, execution of definitive Loan documents and TSX Venture exchange and other regulatory approvals as may be required.

Common Share Unit financing

MBMI reports that it has also arranged a non-brokered private placement financing of up to 7,000,000 Units at $0.075 per Unit for gross proceeds of $525,000. Each Unit consists of one Common Share and one full Common Share Purchase Warrant. Each full Warrant entitles the holder to purchase one Common Share at a price of $0.10 and has an expiry period of 2 years. All common shares issued will be subject to a four month hold period, and subject to TSX Venture exchange approval.

The net proceeds of the financings shall be used for exploration and development of the Company's Philippine nickel mineral properties, and for general corporate purposes. Finders' fees will be payable on closing.

Corporate Profile

MBMI Resources Inc. 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.


Michael T. Mason, President and Director
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