Geoinformatics Exploration Inc.

Geoinformatics Exploration Inc.

May 05, 2007 10:00 ET

Geoinformatics Plans to Spin-off Australian Subsidiary

TORONTO, ONTARIO--(CCNMatthews - May 5, 2007) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce that it is planning to spin-off an approximate 50% ownership interest in its wholly-owned Australian subsidiary, Clancy Exploration Limited ("Clancy"), through an initial public offering. Clancy has executed an engagement letter with a Sydney broking firm in connection with the proposed offering, which will be completed under the laws of Australia.

It is anticipated that a prospectus for the offering (the "Prospectus") will be filed with the Australian Securities and Investments Commission within two to three weeks. Clancy intends to raise a minimum of AUD$3.5 million and allow for oversubscriptions of an additional AUD$1.5 million. The Prospectus will be made available only to Australian residents after it is filed with the Australian Securities and Investments Commission and the Australian Securities Exchange and the offer opens. Applications for Clancy common shares may only be made in Australia and by completing the application which will accompany the Prospectus.

Geoinformatics is focusing its exploration activities in North America under the Master Strategic Alliance Agreement with Kennecott Exploration Company ("Kennecott") pursuant to which it will drill 30 or more exploration targets between 2006 and February 2008. It will retain a significant indirect interest in its Australian properties through its ownership interest in Clancy.


Geoinformatics is a global exploration company which has developed a unique and innovative approach to mineral exploration. The Company is actively exploring several significant properties located in British Columbia (Redton, Kliyul, Mesilinka), the Battle Mountain Trend region of Nevada (Colorback), and the State of Sinaloa in Mexico (La Noria/Azulitas). The Company also has an extensive portfolio of joint ventures, other direct property interests and royalties covering a wide range of minerals in Australia and New Zealand and North America.

The Company has entered into a Master Strategic Alliance Agreement (the "Master Agreement") with Kennecott under which it will use its scientific and technology platform (the "Geoinformatics Process"), which integrates data aggregation, data mining and three-dimensional modeling, to identify and prioritize 30 or more exploration drill targets over the initial two years of the agreement. Pursuant to the Master Agreement, Kennecott retains certain royalty and/or back-in rights. The Geoinformatics Process has been designed to assist in understanding and quantifying risk at a much earlier stage of the exploration cycle than has traditionally been available. The Company's objective is to advance its properties to a stage of commercial development by applying faster, less expensive and more reliable analytical methods to resource exploration.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our current Annual Information Form and other recent securities filings available at Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Geoinformatics Exploration Inc.
    Kevin L. Snook
    (416) 861-1300 x226
    Geoinformatics Exploration Inc.
    Dr. Nick Archibald
    Executive Vice-Chairman and CEO
    (416) 861-1300 x224
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, Ontario M5H 2S8