GobiMin Inc.

GobiMin Inc.

October 24, 2005 15:06 ET

Jinchuan Group acquires 10% stake in GobiMin

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2005) - GobiMin Inc. (TSX VENTURE:GMN) is pleased to confirm that, as part of the private placement completed on the closing of the acquisition of Alexis Resources Inc. announced on October 1, Jinchuan Group Ltd., China's largest nickel producer and smelter operator, has invested Cdn $3.06 million in GobiMin Inc. by acquiring 5.1 million common shares of the Company or 9.996% of the total shares issued and outstanding. Jinchuan has announced that it will be expanding its nickel smelting capacity from the current 90,000 tonnes per year to 150,000 tonnes by 2008. The expansion plans have necessitated Jinchuan to seek additional sources of raw material than its current capacity can supply.

Felipe Tan, GobiMin's President & CEO was reported by Reuters to have commented on Jinchuan's investment: "We have a five-year renewable contract with Jinchuan to 2009 - GobiMin will supply all the nickel output from its mines in the Hami region to Jinchuan's smelters. Jinchuan's investment in GobiMin is indicative of their confidence in our Company's ability to explore and develop our extensive property position so as to contribute to their expansion plans", Mr. Tan added. "GobiMin's objective is to become a major supplier of nickel concentrate to Jinchuan Group over the next five years."

GobiMin is presently planning an extensive drilling program, as recommended by SRK Consulting (Canada) Inc. in their NI 43-101 Report, to validate historical assaying results from 62 boreholes (approx. 42,000 meters) carried out by Chinese geological teams, on a sulphide nickel property (Huangshan) situated a few kilometres away from GobiMin's existing producing mines.

In addition, GobiMin is preparing an extensive airborne geophysical program covering several hundred square kilometres in the mineralized zone of the Hami region, including three targets already showing nickel mineralization. This will be used to identify and develop further deposits. Management believes that given the geological potential of the Hami region, these two initiatives have the potential to make GobiMin a major nickel player in China.

GobiMin Inc., through its subsidiaries, is the largest nickel producer in the Hami region located in northwest China. The shares of GobiMin commenced trading on the TSX Venture Exchange on October 12, 2005 under the symbol GMN. Currently the Company has approximately 51 million shares outstanding and recently reported second quarter earnings of Cdn. $1,977,656.

Additional information concerning GobiMin, including the full text of the SRK technical report on the Hami properties, is available at sedar.com

This press release contains certain "forward-looking statements". Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of base metals, risks associated with mining operations, including environmental risks and hazards and other risks.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • GobiMin Inc.
    Michael Choy
    Chief Financial Officer
    (604) 649-3766
    GobiMin Inc.
    Donna Yoshimatsu
    Investor Relations
    (416) 362-8809