Industrial Minerals Inc.
OTC Bulletin Board : IDSM

Industrial Minerals Inc.

March 11, 2011 07:50 ET

Industrial Minerals Announces Revocation of Cease Trade Order

OTTAWA, CANADA--(Marketwire - March 11, 2011) - Industrial Minerals, Inc. ("IDSM" or the "Company") (OTCBB:IDSM) is pleased to announce that effective March 10, 2011, the British Columbia Securities Commission (the "BCSC") has issued a full revocation of the cease trade order ("CTO") issued against the Company by the BCSC on August 18, 2009.

The CTO had been issued by the BCSC as a result of the Company's failure to file a technical report on the Company's Bissett Creek graphite project located in Northern Ontario within 45 days of issuing a press release on November 21, 2007 announcing a mineral resource estimate and a preliminary assessment as required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Company was designated as a reporting issuer in British Columbia by the BCSC on September 15, 2008 under BC Instrument 51-509 Issuers Quoted in the U.S. Over-the-Counter Markets, by virtue of the fact that the Company had a director resident in British Columbia.

As announced by the Company on February 22, 2011, the Company has filed an amended and restated technical report with respect to the Bissett Creek graphite project. The Company has also filed amended annual information forms for 2008 and 2009. These documents are available under the Company's profile on SEDAR at Reference is also made to the press release issued by the Company on February 22, 2011 clarifying its historical disclosure with respect to the Bissett Creek project.

The Company intends to continue supporting its subsidiary, Northern Graphite Corporation ("Northern"), with respect to the potential development of the Bissett Creek graphite project until the completion of Northern's planned initial public offering ("IPO"). The IPO has been delayed as a result of the need to obtain the revocation of the CTO, and due to the substantial amount of time and cost involved in getting the CTO revoked, it was necessary for the Company to sell 2,000,000 common shares of Northern to fund operations, which reduced its interest from 51% to 42.5%. After the IPO is completed and a market valuation established for Northern, the Company will review alternatives for distributing most or all of its shares of Northern to IDSM's shareholders.

The Company also intends to change its name, consolidate its shares, add at least one more independent director and seek to identify and acquire a new business activity, most likely in the natural resource industry. As part of this process the Company will evaluate options for upgrading its listing. The Company intends to hold a shareholders meeting within three months and to the extent that sufficient progress has been made, will present these initiatives for approval by shareholders at that time.

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 2009 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.

Contact Information

  • Industrial Minerals Inc.
    Gregory Bowes, CEO