Industrial Minerals Inc.
OTC Bulletin Board : IDSM

Industrial Minerals Inc.
Northern Graphite Corporation

Northern Graphite Corporation

April 01, 2010 08:30 ET

Northern Graphite Initiates Environmental/Mine Permitting Process

OTTAWA, ONTARIO--(Marketwire - April 1, 2010) - Industrial Minerals Inc. (OTCBB:IDSM) ("IDSM") and its subsidiary Northern Graphite Corporation ("Northern" or the "Company"), announce that Stantec Consulting Ltd. has been retained to prepare a detailed scope of work, schedule and cost estimate to obtain environmental and governmental approvals, complete a Closure Plan amendment, and conduct a critical issues assessment to enable Northern to commence development of the Bissett Creek graphite project. 

Gregory Bowes, CEO of Northern stated that "Permitting is the longest lead time item and by starting now we hope to be in position to make a construction decision within 12 to 18 months." He added that "Recent financings have also given us the confidence to commence metallurgical testing and an exploration and confirmation drilling program, followed by a Pre Feasibility Study which will be finished by the end of the year." 

Northern owns 100% of the large Bissett Creek graphite deposit which is located 15km from the Trans-Canada highway, east of North Bay, Ontario. A full feasibility study was completed by Kilborn Engineering and others in 1989 (which pre-dates National Instrument 43-101 and is not compliant), but Bissett Creek was not developed due to a subsequent decline in graphite prices. Graphite prices have since recovered due to the ongoing industrialization of China, India and other emerging economies. However, new applications such as lithium ion batteries, fuel cells and nuclear and solar power have the potential to create significant incremental demand growth. There is up to 20 times more graphite than lithium, in a lithium ion battery. China, which produces 80% of the world's graphite, is seeing production and export growth leveling off and export taxes and a licensing system have been instituted. With limited worldwide exploration and few potential development projects on the horizon, the Company is well positioned to benefit from the continued improvement in graphite demand and prices.

Financing Update

Northern also announces that it has completed additional private placements totalling 1,327,000 units for gross proceeds of CDN$331,750. Each unit was priced at C$0.25 and is comprised of one common share and one common share purchase warrant exercisable at a price of C$0.35 per share for a period of 18 months from the date upon which the Company or its successor becomes a reporting issuer in a jurisdiction of Canada. In addition, the Company has issued 400,000 units, with the same terms, as part of debt settlement agreements with three creditors of the Company. Northern now has 22,905,571 common shares outstanding of which IDSM owns 11,750,000.

Subject to the receipt of all required corporate, regulatory and stock exchange approvals, Northern plans to complete a going public transaction in Canada as soon as possible and as part of this process IDSM plans to distribute its Northern shares to IDSM shareholders. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities described herein have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements of such Act.

Safe Harbor Statement: All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company's Annual Report on Form 10-K for 2008 as filed with the Securities and Exchange Commission. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. 

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS RELEASE

Contact Information

  • Gregory Bowes, CEO
    613-241-9959