Tiberon lines up US$100 million Nui Phao financing

Vancouver – Development of Tiberon Minerals’ (TBR-T) 77.5% controlled Nui Phao tungsten-fluorspar project in Vietnam has moved a major step forward following the appointment of two banking groups to facilitate a US$100 million debt financing.

The Fortis Bank and WestLB will jointly structure and arrange a term loan facility for Tiberon and the Nui Phao Joint Venture Mining Company.

The 2003 Nui Phao pre-feasibility study outlined an estimated initial capital cost of US$140 million for the tungsten project, with a 70% debt, 30% equity financing structure for its development.

Tiberon, through its 77.5% interest in the Nui Phao Joint Venture Mining Company, now plans to push forward on completing a bankable feasibility study (BFS) on the project. The project financing is expected to be finalized in mid-2005, upon completion of the BFS.

Fortis Bank and WestLB, both European based financial institutions, are experienced in mine project financings and have been involved in a number of large projects throughout Asia.

The Nui Phao deposit is a polymetallic skarn hosting tungsten, gold, copper, bismuth and fluorine mineralization. The project is located 80 km. northwest of Hanoi in Thai Nguyan province. Significant infrastructure exists near and within the project area, including a highway, power grid, and an active rail line that connects the site to a port.

Extensive drilling has outlined the tungsten deposit over 1.7 km. of strike and over 400 metres width. It is up to 160 metres thick and near surface, with thin to moderate overburden consisting of clays and saprolites, making it very amenable to open pit mining methods.

The pre-feasibility study estimates average annual production of 6,000 tonnes tungsten trioxide, 196,000 tonnes of acid-grade fluorspar and 5,600 tonnes of copper with values of gold and bismuth.

A measured and indicated resource of 60.5 million tonnes grading 0.6% WO3 equivalent has been calculated. There is an additional inferred resource of 27.4 million tonnes of 0.5% WO3 equivalent. The deposit remains open towards the west.

Tiberon has been active on the Vietnamese project since 1997 and has advanced it along with partners Thai Nguyen Mineral Company, 15%, and Export-Import Investment Company, Thai Nguyen, 7.5%.

The company reports 40.5 million shares outstanding. The issue rose on the announcement, up 15, to the $2.20 per share level, at presstime, on moderate volume.