COPY OF FINAL PROSPECTUS - Mirabela Nickel

esources by holders of mining concessions (including extraction permits). The rate is currently between 0.2%
and 3% of net income arising from the sale of the mineral product, less taxes on sales of the mineral product,
transportation and insurance costs. The rate for nickel is currently 2% (the ‘‘Government Royalty’’).
Royalty to CBPM or Rio Salitre
Under the Mining Agreement, Mirabela must pay a royalty to CBPM equal to 2.51% of the gross revenue
from the sale or conversion of concentrates of nickel produced from sulphide ore plus the market value of other
metals which are economically recoverable and marketable and a royalty on the laterite ore sold or converted
ranging from US$2.01/t to US$1.01/t of laterite ore, based on the value of nickel on the LME. Mirabela must
also pay a royalty to CBPM for other metals economically recoverable including copper, cobalt, gold, and metals
in the platinum group equal to the Brazilian Real equivalent of US$0.31/t of extracted mineral transferred or
sold. See ‘‘General Business of the Company — The Company’s Interests in the Santa Rita Project.’’
Royalty to Landowners
As previously stated, pursuant to the Land Purchase Agreements, Mirabela must pay the vendors a royalty
equal to 1% of the net revenue derived from the sale of the minerals extracted from such vendors’ property, less
taxes, transportation and insurance costs. Landowners, other than vendors of land from which Mirabela extracts
minerals, will be entitled to a royalty which is equal to 50% of the Government Royalty described above. See
‘‘General Business of the Company — The Company’s Interests in the Santa Rita Project — Surface Rights’’.
In each case, the amount of royalty paid to a landowner is pro rata based on the net revenues derived from
the sale of minerals extracted from such landowner’s property.
DRILLING AND EXPLORATION OF THE SANTA RITA PROJECT AREA AND
THE PALESTINA PROJECT AREA
Overview
Mirabela has an active drilling and exploration program in the Santa Rita Project area and at the Palestina
Project area with a view to increasing the resources available to the proposed mill, thereby potentially justifying
a higher production rate and an extended mine life.
Mirabela’s drilling program has focused on the deeper parts of the central, southern and northern zones of
the existing Santa Rita resource. Mirabela’s exploration program is focused on the Peri Peri project, two
kilometres to the north-east of the Santa Rita Project (and within the Santa Rita Project area) and the Palestina
project, 25 kilometres to the south of the Santa Rita Project.
Mirabela Brazil also entered into the Evaluation Agreement with Inco Brazil for the joint exploration,
evaluation and development of new nickel sulphide resources on the Company’s Santa Rita, Palestina and São
Francisco project areas, pursuant to which Inco Brazil and Mirabela Brazil will now enter into a farm-in
agreement in respect of certain aspects of the Santa Rita and Palestina projects.
Central and Southern Zone Drilling
In November 2006, the Company commenced an infill drilling program consisting of 34 holes
(13,177 metres) designed to convert 6.2 million tonnes (0.55% nickel) of inferred mineral resource within open
pit limits to indicated mineral resource. As of the date of this prospectus six holes remain to be drilled in order
to complete this drill program. By reducing drill hole spacing from approximately 100 metres to 50 metres, the
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