TORONTO, Jan. 23 /PRNewswire-FirstCall/ -- Industrial Minerals Inc. (OTCBB: IDSM - or "the Company") today announced that it has received a letter of intent (LOI) from ACC Resources Corp LP (ACC), one of the world's largest refined graphite suppliers, to initially purchase between 5,000 and 10,000 metric tonnes of flake graphite concentrates annually.
The purchase price for the graphite will be determined at the time of sale and based on prevailing global prices.
"This is an extremely important development for the Company as it represents potential revenues coming from 20 to 40 percent of the annual projected plant capacity," said David Wodar, President and CEO of Industrial Minerals, "ACC has also indicated to us that annual volumes are likely to grow given the expansion in the markets served. We expect to have a lasting relationship with ACC when our graphite property begins production."
ACC expects to market this product in Latin America, Africa, Asia, and in national markets where strong and consistent industrial growth is taking place. ACC has also informed Industrial Minerals that it may market in other regions, depending upon prevailing economic conditions.
Initial sales contemplated under this LOI are expected to begin in 2010.
Also the Company would like to announce that as of Dec. 27th 2007 the finalized Preliminary Assessment NI 43-101 report was filed with the Ontario Securities Commission (OSC). The report is available for viewing at the OSC office or please contact the Company to receive an electronic copy.
About Industrial Minerals, Inc.
Industrial Minerals Inc. through its wholly owned subsidiary Industrial Minerals Canada Inc., headquartered in Oakville, Ontario, Canada, owns 100% of an undivided interest in the Bissett Creek Graphite patented mineral lease, containing a resource of 640,000 tons of flake graphite on approximately 10% of the patented mineral lease that has been drilled to date. The property is comprised of 28 claims covering an area of approximately 1,315 hectares (3,250 acres). It has been the subject of substantial earlier exploration drilling, trenching and metallurgical test work by KHD Canada, Kilborn Engineering, Pincock Alan and Holt and Cominco Engineering Services. The property is located in Maria Township in the Province of Ontario, Canada. The property is one of the largest and purest natural flake graphite deposits in the world. The Company plans to become the leading producer of large flake crystalline graphite in North America and a prominent market participant internationally.
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 the 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 2006 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.
Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. Our reference to a "resource" above may not be consistent with established SEC guidelines for the disclosure of mineralized material. U.S. investors are urged to consider closely our disclosure on Forms 10-QSB and 10-KSB (File # 0-30651) which are available at the SEC's website at http://www.sec.gov/edgar.shtml.
