IMA Exploration Inc.

IMA Exploration Inc.

October 19, 2006 09:15 ET

IMA and Aquiline Agree on Terms for the Transfer of Navidad Pending the Appeals Process

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 19, 2006) - IMA Exploration Inc. (TSX VENTURE:IMR)(AMEX:IMR)(FWB:IMT)(WKN 884971) ("IMA") and Aquiline Resources Inc. ("Aquiline") have reached a definitive agreement for the orderly conduct of the Navidad Project pending the determination of the appeal by IMA against the judgment of the trial court. The principal terms and conditions of the agreement (a copy of which has been filed on include:

- control of the Navidad project will be transferred to Aquiline in trust for the ultimately successful party in the appeal;

- IMA and Aquiline have agreed to the costs spent to date developing the Navidad Project in the amount of $18,500,000. Aquiline will pay $7,500,000 of the costs into trust and the balance will be expended by Aquiline in developing the Navidad Project and secured under the terms of the trust conditions;

- in the event that IMA is unsuccessful on appeal, IMA will be paid such $18,500,000 amount;

- in the event that IMA's appeal is successful, it will pay Aquiline's qualifying costs expended on developing the Navidad Project during the period of the appeal and control of the Navidad Project will then revert to IMA; and

- pending the finalization of the appeal process, neither party will attempt a hostile takeover of the other.

IMA will maintain its excellent relations with Navidad stakeholders and will cooperate with Aquiline to ensure that the Navidad Project proceeds to development. IMA is inviting company managers and staff as well as mining and government authorities, members of the first nations and all stakeholders to continue cooperating in order to see Navidad a successful reality for the benefit of the Province of Chubut and the ultimately successful owner.

"We are pleased to report that this agreement has been reached as it brings stability to IMA by complying with the order of Madam Justice Koenigsberg, while allowing IMA to concentrate on the appeal of that decision and to protect its position and while allowing the Project to resume the process of development that has been temporarily halted due to the uncertainties that were created by the decision on July 14, 2006. We would like to reassure our shareholders that we continue to fight to regain our ownership of Navidad. This will be the Company's sole focus," said Joseph Grosso, CEO and President.


Mr. Joseph Grosso, President & CEO

Cautionary Note to U.S. Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

2006 Number 18

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

Contact Information

  • IMA Exploration Inc.
    Joseph Grosso
    President & CEO
    1-800-901-0058 or (604) 687-1828
    IMA Exploration Inc.
    Sean Hurd
    Vice President, Investor Relations
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)