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Iberian Closes Acquisition of Producing Copper Mine in Peru

 

Feb 12, 2008 18:00

 

Iberian Minerals Corp. (TSX VENTURE:IZN) ("Iberian") is pleased to announce that the acquisition of 92% of the issued and outstanding shares of Compania Minera Condestable ("CMC") from Trafigura Beheer B.V. ("Trafigura") has closed.

 

The closing of the CMC acquisition means that Iberian now owns approximately 92% of CMC, the owner and operator of the Condestable Mine and lessee of the Raul Mine (collectively the "Condestable Mine") located 90 km south of Lima in Peru. The Condestable Mine has been in continuous production since 1998. For detailed information in respect of CMC and the acquisition, as well as the proforma financial information which gives effect to the closing of the acquisition, please refer to the Management Information Circular of Iberian dated November 20, 2007, available at www.sedar.com.

 

As partial consideration for the acquisition the Company has issued to Trafigura 65,990,833 common shares in the capital of the Company ("Common Shares") at a deemed price of $1.80 per Common Share for a deemed aggregate issue price of US$115 million (exchange rate of US$1.00 equals $1.0329). Trafigura has also been granted a 46% net operating profit ("NPI") of CMC for a term of four years commencing January 1, 2011 payable in cash or, at the option of Trafigura and subject to regulatory approval, including the approval of the TSX Venture Exchange, in Common Shares. Iberian shall have the right until June 30, 2011 to purchase the NPI from Trafigura for US$60 million. The Common Shares issued to Trafigura will be subject to a hold period that expires June 12. 2008.

 

Iberian would like to thank Mr. Michael Newbury, Mr. Peter Gleeson, Mr. Maurice Stekel and Mr. Jose Arnau for their contributions to Iberian as directors and wish them well in their future endeavours. Joining the board of Iberian are Mr. Jesus Fernandez, Co-head of Corporate Finance for Trafigura, and Mr. Thomas Savage, General Manager of CMC.

 

About Iberian Minerals Corp.

 

Iberian Minerals Corp. is a Canadian-based global copper and zinc company with developing and operational interests in both Spain, the Aguas Tenidas Project and Peru, the Condestable Mine. Iberian Minerals Corp. is well-funded with a strong, experienced management team and a significant partner in it's largest shareholder, Trafigura Beheer B.V.

 

About Trafigura Beheer B.V. Amsterdam

 

Trafigura is one of the world’s leading international commodity traders, specialising in the oil, minerals and metals markets, with 51 offices in 36 countries in Europe, Africa, Asia, Australia, and North, Central and South America. Its principal corporate offices are in Amsterdam, London and Lucerne.

 

Trafigura’s primary trading businesses are the supply and transport of crude oil, petroleum products, natural gas, liquefied natural gas, metals (including copper lead, zinc and aluminium) and metal ores and concentrates.

 

It is the world’s second largest independent non-ferrous trading company and the third largest independent oil trader.

 

Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in the last five years, growing turnover from US$9 billion in 2001 to US$51 billion in 2007. Its equity is now in excess of US$1.3 billion.

 

Including the Common Shares issued on closing of the Acquisition, Trafigura currently holds approximately 42% of the issued and outstanding Common Shares of Iberian.

 

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