MICREX DEVELOPMENT CORP.
A mineral exploration and development company operating in Canada and the United States
TSX Venture Exchange symbol "MIX"
SEC 12 g (3) Exemption 82-4281
For immediate release
May 11, 2006
Financing Announced And Projects Update
Financing
The Company is, subject to regulatory approval, undertaking a non-brokered private placement by the issuance of 75,758 Units at $6.60 per Unit, each Unit consisting of 9 shares issued on a flow-through basis, 3 shares and 12 warrants. Each warrant entitles the holder to subscribe for an additional share at an exercise price of $0.65 for a period of 1 year from closing. The Company will pay a finder's fee of 10% on funds raised. Proceeds will be used to further the Company's programs on both the Bighorn and Burmis projects.
Quebec Magnetite Project
Operations at Quebec are still on schedule for this summer. Specialty Minerals Corp. will be taking up to 10,000 tonnes as a bulk sample test of its production system, processes and market. To clarify the Company's press releases of November 8, 2004 and January 11, 2006, the claims came with permitting sufficient to cover SMC’s immediate needs of up to 10,000 tonnes and the two companies are ramping up permitting for increased tonnage to keep pace with SMC’s anticipated production schedule.
Bighorn Gold Project, Northern BC
At Bighorn the 2005 exploration program first disclosed in the Company's press release dated February 17, 2005 was put on hold due to conflicts in scheduling exploration crews and resources. Weather became a factor later in the season and even though it may have been possible to mobilize to the site, costs would have been substantially higher and the ability to carry out the detailed program that was planned may have been compromised. As a result Micrex has postponed the exploration program to the summer of 2006. Subject to completion of the financing announced above, this program is scheduled to start in the later part of June.
Burmis Magnetite Project
As part of the ongoing work on the mining permit at Burmis, Micrex has identified the potential to lower long term operating costs at the magnetite production facility while at the same time addressing the environmentally responsible operating parameters that the Company has established for the project in relation to tailings transport, storage and reclamation. A secondary storage and reclamation system has become an option that has the potential to impact both the permit and the long term economics of the project.
Rather than run the risk of delay at the permit approval stage or have a request for further public consultations after the permit application has been submitted, Micrex has hired AMEC Engineering to complete the tailings disposal plan and do a thorough evaluation of the concept. This has included site visits and a ground survey covering a substantial area to allow AMEC to design an integrated tailings disposal plan that will allow long term operation of the production plant at lower cost and greater facility efficiency. Once this plan is completed Micrex intends to have public consultations on the integrated operating plan for local stakeholders before making the final permit submission that was referred to in the Company's October 3, 2005 press release.
The last of the samples recovered during the Company's last exploration program on the Burmis property (as disclosed in the Company's September 14, 2004 press release) have now been received, and once they have been reviewed and analyzed by Mike Dufresne of Apex Geoscience of Edmonton, Alberta, the company's Qualified Person, a press release will be issued.
Options Granted
The Company wishes to update its December 2005 press release which indicated that 447,000 options had been granted. The Company actually granted only 375,520 options, a difference of 71,480 options (0.2% of the basic issued and outstanding shares).
Further information may be obtained from Perry Meszaros or S.E. Marshall at (780) 448-0922
or email at mixinfo-1@mixcorp.com
Web site address: www.mixcorp.com
MICREX DEVELOPMENT CORP.
Peace River Diamond Property • Burmis Magnetite/Titanium Property • St. Charles de Bourget Magnetite/Titanium Property • Fort Steel Placer Property • Bighorn Gold Mine • Banks Gold Mine • Mount Royal Gold Mine • Deadwood Gold Mine • Sunburst Gold Property
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