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Beralcast Business Acquisition Update
In May 2009, IBC entered into a letter of intent to acquire the US patents; trade name rights to "Beralcast(r)"; proprietary know-how; manufacturing equipment; plans for a new manufacturing plant; marketing and supply agreements; and US beryllium stockpile bidding requirements and bona fides. These assets will be acquired through the purchase of Beralcast(r) Corporation, a private US company that IBC intends to acquire for consideration of US$2,250,000 in cash and US$2,000,000 in IBC's common shares. IBC is working on a definitive purchase and sale agreement with the vendor, who is at arm's length to IBC. No finder's fee is payable in connection with the proposed purchase.
Completion of this transaction is subject to several conditions including raising sufficient capital to fund the purchase; entering into an employment contract with the proposed president of Beralcast(r) Corporation; the acquisition of all the assets listed above by Beralcast(r) Corporation; customary due diligence and approval by the boards of directors of IBC; shareholders of the target company; and the TSX Venture Exchange. There can be no assurance that these conditions will be satisfied or that the transaction will be completed as proposed or at all. If the transaction does complete as proposed, it is likely that the vendor will hold more than 10% of IBC's outstanding common shares and will accordingly be classified as an insider under Canadian securities laws.
In the 1960s, Starmet Corporation, in cooperation with Lockheed Martin, developed a binary alloy of beryllium-aluminum, which has been copied by others. Later, Starmet developed a castable metal matrix composite beryllium aluminum alloy now manufactured as Beralcast(r) which no one, to the best of the manufacturer's knowledge and inquiry, has been able to duplicate. Other companies have developed casting processes for beryllium-aluminum alloys, but, other than Beralcast(r), none are commercially available to the best of IBC's knowledge. Beralcast(r) alloys are more than three times stiffer than aluminum with 22% less weight and can be precision-cast to simple and complex configurations. Beralcast(r) is ideally suited for certain demanding semiconductor manufacturing equipment, computer components and other commercial and aerospace applications and allows for a near-net shape to be cast for maximum manufacturing efficiencies.
"We have identified Beralcast(r) as highly complementary to our existing alloy production operations" commented Anthony Dutton, IBC's president and CEO. "It would add a higher margin proprietary product that is well suited to our focus on the aerospace sector. Our relationship with Kazatomprom and Ulba Metallurgical Plant will be helpful to developing this business segment". More information can be accessed in IBC's presentation, which is available at its website www.eragonlatrilogia.com.
About IBC Advanced Alloys Corp.
IBC Advanced Alloys Corp. is an integrated rare metals manufacturer and distributor of beryllium-based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 59 employees and is headquartered in Vancouver, Canada with production facilities in Pennsylvania, Indiana and Missouri. Additionally, IBC owns prospective beryllium properties in the Western US and Brazil covering approximately 9,500 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC's common shares are traded on the TSX Venture Exchange under the symbol "IB".
For additional information please contact:
IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
(604) 685-6263 ext 110
Legal Notice Regarding Forward Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing operations and mineral exploration, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.