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KAP RESOURCES LTD. ANNOUNCES APPROVAL OF LOAN AND EQUITY INVESTMENT

 VANCOUVER, British Columbia, March 29 /PRNewswire/ -- The board of directors of KAP Resources Ltd. (Vancouver: KAR) is pleased to announce the approval of a U.S. $9 million loan and equity investment to finance Minera Yolanda Ltd., the company's Chilean subsidiary for the development of its nitrate deposit.
 The Inter-American Investment Corp.'s board approved a U.S. $7 million loan to, and a U.S. $2 million equity investment in, Minera Yolanda Ltd., to finance the mining of approximately 1.7 million metric tons per year of ore or "caliche" for the production of iodine, sodium and potassium nitrate.
 The project whose estimated total cost is U.S. $78 million, entails the development of a nitrate deposit (Yumbes) located in Chile's second region, approximately 90 km north of Taltal. It is projected that the mining and subsequent processing of the ore will result in the annual production of about 180 metric tons of iodine to be sold to the domestic and international animal feed and health industries and of 300,000 metric tons of nitrate products to be sold mostly in the domestic and international fertilizer markets.
 The IIC is being retained as financial advisor to assist in obtaining co-financing of an additional $34,000,000 and will assist the company in determining which partners &/or investors best compliment the project.
 The project meets a number of the IIC's developmental criteria by creating approximately 600-700 direct and indirect employment opportunities in an area suffering from unemployment, by generating about U.S. $30 million in hard-currency from exports annually, and by mining and processing a non-metallic mineral commodity utilizing state-of-the-art technology.
 The IIC is a multilateral investment corporation that promotes the economic development of its regional member countries by stimulating the establishment, expansion and modernization of private enterprises and by supporting financial intermediaries in Latin America and the Caribbean. The IIC works directly with private enterprises and financial intermediaries in these countries and neither seeks nor requires government guarantees. The IIC is affiliated with the Inter-American Development Bank (IDB); it is legally autonomous and its resources and management are separate from those of the IDB.
 -0- 3/29/93
 /CONTACT: Theodore J. Roth, secretary of KAP Resources, 604-684-3354/
 (KAR.)


CO: KAP Resources Ltd.; Minera Yolanda Ltd. ST: British Columbia IN: MNG SU:

JB-JL -- LA023 -- 0648 03/29/93 15:54 EST
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Date:Mar 29, 1993
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