IMZ signed an agreement with a China company for financing and construction of gold projects in Rio Blanco and Gaby-ECUADOR.
Thursday, November 16 from 26/11/2010 Scottsdale, AZ-
The International Minerals Corporation (Toronto Stock Exchange and Switzerland: ¨ IMZ, "or" the Company · ) is pleased to announce that the company has signed a Memorandum of Understanding (¨ ¨ with a company MOUs China, China CAMC Engineering Co., Ltd. (¨ China Co °) for the financing and construction in Ecuador gold project Rio Blanco and Gaby ('projects').
IMZ currently has a 100% in the Rio Blanco project interests and mining claims comprising the Gaby project, have variable interest rates ranging from 51% to 100%.
On the basis of Memoranda of Understanding for Projects (see page 2 for details), China Co., the terms would be:
• Organizing production financing the debt required for projects through one or more financial institutions in China (the "Lender").
• Build and mining operations and deliver turnkey projects based on an industry standard contract for Engineering, Procurement and Construction (EPC).
• Build and mining operations and deliver turnkey projects based on an industry standard contract for Engineering, Procurement and Construction (EPC).
The transaction is subject to a number of conditions, including: (a) receipt of necessary permits for the construction of the mine and processing facilities of mining projects in Ecuador, (b ) Canadian regulatory approvals and (c) completion of definitive documentation to provide the production financing and turnkey contract, the latter with a specific end date of January 31, 2011.
Stephen Kay, President and CEO of IMZ, said: "We are very pleased to sign this memorandum of understanding with China Co, which have a well established reputation for design, engineering and construction of turnkey industrial projects in high quality, worldwide look forward to working with China Co. to streamline the financing, construction and commencement of production in the Rio Blanco and Gaby deposit. "
key aspects of the MOU are summarized below, is pending the final amount of funding required for the Project, subject to the work of final engineering design by China Co.
projected waiting time for the construction of the project depends on several factors:
• In Rio Blanco, already completed a feasibility study (February 2006) and detailed engineering is advanced by 90%. Before the suspension of all exploration activities in Ecuador and the Ecuadorian government, which took place in March 2008, was late in the approval of Environmental Impact Assessment (EIA) for the construction of the mine. Is expected to resume shortly the EIA approval process and it is estimated that authorizations can be received by IMZ in the first half of 2011. Depending on the negotiation of the production contract for the project, as set forth in the Mining Law in Ecuador, the Rio Blanco expected that the first production could begin in late 2013 or early 2014.
• In Gaby, but IMZ has completed a preliminary feasibility study, with an estimated 6,900,000 ounces of gold in the category of measured and indicated resources (4.1 million ounces attributable to IMZ), the waiting time for the production will be longer than in Rio Blanco, because they must complete a study feasibility, prior to be authorized to begin production.
Here are the key parameters of the MOUs signed with China Co.:
| PROJECT | RIO WHITE | GABY |
| Project Property | Equity 8 0% IMZ / 20% China Co. or its representative | IMZ 66% / 34% China Co. or its representative. |
| Operator | IMZ IMZ or Contractor appointed. | IMZ IMZ or contractor appointed by |
| Amount to be financed | On the basis of the final estimate by the project China Co. hand key (EPC) . | On the basis of the final estimate, by China Co. hand on key project (EPC) . |
| interest rate | - 5.85% Cap - real rate to be determined | - Stop 5.50% - real rate to be determined |
| | - Since 75% of Cash Flow Mine (MCF) capital owners - 25% of the MCF is divided equally between | - Since 75% of Cash Flow Mine (MCF) - 25% of the MCF is divided equally between the owners of capital |
| repayment term of | Eight years after the initial disbursement of funds | Ten years the initial disbursement of funds |
| % Funded by the Creditor | 85% | 87.5% |
| % funded by IMZ | 15% | 12.5% \u200b\u200b |
| Loan Appeal | project alone. No corporate guarantee. | project alone. No corporate guarantee. |
| IMZ law buyback | - IMZ can buy back 20% (to reach 100%) based on a NPV of 10% within a period of 18 months of production begins | - IMZ can re- buy the 34% (to reach 100%) based on a NPV of 10% within 18 months of production begins |
| Cash for IMZ | - 9.0 million USD after 18 months of signing the EPC contract (hand key) | - 12.0 million U.S. dollars after 18 months of signing the EPC contract (hand key) |
| Orders stock by China Co. or its representative | - 0.5% of the issued and outstanding IMZ - Approximately 600,000 price guaranteed at time of initial delivery of the funds | - 2.0% of the issued and outstanding IMZ - Approximately 2.4 million warrants to the price of time the initial delivery of the funds |
| Time definitive agreement | - Estimated date: January 31, 2011 | - Estimated date: January 31 2011 |
| EPC Contract (hand key) | - Can be extended by mutual agreement | - Can be extended by mutual agreement |
payment will be made to find a third party in relation to their management by facilitating the financing deal, paying the disbursement of Creditor as follows: (a) 5% of the first 300 million U.S. dollars, (b) 3% of the next $ 600 million U.S. dollars, and (c) 2% of any additional funding.
ON THE WHITE RIVER PROJECT
Here are the key parameters of the Rio Blanco project, based on (a) The results of an independent feasibility study and A subsequent simultaneous independent technical report 43-101, both dated January 30, 2006, and, (b) An internal renovation costs and operating capital, reported in the progress report dated February 19, 2009:
• High grade epithermal deposits of gold and silver veins.
• Proven and Probable Reserves: 605,000 oz (ounces) of gold and 4.3 million (oz) ounces of silver, contained in 2.2 million tonnes (Mt) of 8.8 grams of gold per tonne (g / t) and 62 g / t silver
• Estimated average annual production: about 70,000 ounces of gold and 400,000 ounces of silver.
• Total cash costs: approximately $ 300/oz of gold (including extra credit produced by the silver).
• nominal initial Life: 7.5 years with a production 800 tons per day (TPD) (underground).
• Capital expenditure (capex): Approximately $ 165 million, including $ 120 million of estimated capital expenditures and $ 45 million estimated capital and maintenance work.
• Internal Rate of Return (IRR): 32% to $ 1,000 / oz gold and an IRR of 46% to $ 1.300 an ounce of gold.
• Cash flow of the life of the mine, approximately 246 million dollars to $ 1,000 / oz gold and 405 million to $ 1,300 / ounce gold. Play
GABY ON DRAFT Here are the key parameters of the Gaby project (project-based 100%), supported by the results of internal addendum of January 29, 2009, prepared as an addendum to the preliminary feasibility study independent of February 11, 2008 (which generated simultaneous independent technical report NI 43-101 of 26 March 2008):
• gold porphyry deposit of low grade
• The measured and indicated resources: 6.9 million ounces of gold contained in 356 million tonnes of 0.6 g / t gold (59% attributable to IMZ).
• Inferred Resources: 2.9 million ounces of gold contained in 143 million tonnes at 0.6 g / t gold (62% attributable to IMZ).
• Estimated average annual production: approximately 330,000 ounces of gold.
• Total cash costs: approximately $ 700/oz of gold.
initial • Lifetime: 16 years with an output of 60,000 t / day (open).
• Initial capital costs: an estimated $ 1.0 billion.
• Internal Rate of Return (IRR): 11% to $ 1,000 / oz gold and 20% IRR at $ 1.300 an ounce of gold.
• The cash flow for the period of mine life: approximately $ 900 million to $ 1,000 / oz gold and $ 3 billion to $ 1.300 an ounce of gold.
technical data contained in this press release were reviewed and approved by IMZ's Qualified Person, Vice President of Corporate Development, Nick Appleyard.
ABOUT INTERNATIONAL MINERALS
International Minerals is a producer of gold and silver and develops the production of silver and gold mines Pallancata Peru, which owns 40%, and is one of the top 10 primary mine production of silver in the world. IMZ estimates for calendar year 2010 production of approximately 10 million ounces of silver and 33,000 ounces of gold (100% project basis).
IMZ also owns a 40% interest in the gold and silver of the Immaculate Conception located in Peru and the majority or 100% of shares in gold projects in the stage development of Nevada (Goldfield and Converse) and Ecuador (Rio Blanco and Gaby). IMZ also owns a 3% net smelter return (NSR) and royalties gold mine of Barrick Ruby Hill, located in Nevada, producing approximately 100,000 ounces of gold in 2009.
IMZ listed on the Toronto Stock Exchange (since 1994) and the Swiss Stock Exchange (since 2002).
ABOUT CHINA CAMC Engineering Co., LTD. AND CHINA NATIONAL MACHINERY INDUSTRY CORPORATION
China CAMC Engineering Co., Ltd, is a publicly traded company, is located in the Shenzhen Stock Exchange in China and is a subsidiary of majority owned by China National Machinery Industry Corporation (SINOMACH).
The main activity of China CAMC Engineering Co. Ltd focuses on engineering, design, equipment procurement and construction (EPC) turnkey industrial projects, both in China and internationally, including Latin South. The scope of these contracts EPC has an eclectic mix of projects, including: power generation, engineering, transportation, water, food, textiles, telecommunications, petrochemicals and agriculture.
SINOMACH is more diversified range Business in China machinery industry, with wholly owned subsidiaries in 55. Their services cover a wide range of sectors such as mining, metallurgy, energy, construction, aerospace, automotive, financial, engineering and shipbuilding.
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