Iberian Minerals Completes Raul Purchase and Condestable Senior Facility Refinancing
Wed Mar 31, 4:30 PM
ca.news.finance.yahoo.com
TORONTO, ONTARIO--(Marketwire - March 31, 2010) - Iberian Minerals Corp. (TSX VENTURE: IZN.V) is pleased to announce that its subsidiary, Compania Minera Condestable S.A. ("Condestable"), has completed the closing of its senior secured debt facility (the "Facility") with Societe Generale acting as Sole Lead Arranger and Scotiabank Peru S.A.A. acting as Mandated Arranger and On-shore Collateral Agent for a total of US$ 55 million.
The US$ 55 million, 3 year facility, carries an interest rate of 3-month LIBOR plus 3%. In addition, Condestable will be required to hedge a certain percentage of its future copper production.
The proceeds of the facility will be used for the refinancing of the existing facility's balance and the repayment of a bridge loan provided by Trafigura Beheer B.V. for the acquisition of the Raul mining concessions and associated surface land rights. Trafigura is a related party to Iberian by virtue of its 46% shareholdings in the Company.
The existing facility, which closed for a total of US$ 70 million in May 2008, had an outstanding balance of US$ 25.5 million at the closing of this transaction.
The acquisition of the Raul concessions from Corianta S.A., including a consideration of US$ 28 million, was previously announced on December 23, 2009. As a result of this transaction, the company expects to realize annual savings of about US$ 6 million in royalty payments associated with the exiting Raul lease agreement.
Required hedging under the Facility will be executed in the coming days and announced by the Company in due course.
The Facility Agreement is posted on SEDAR at www.sedar.com.
About Iberian Minerals Corp.
Iberian Minerals Corp. is a Canadian listed global base metals company with interests in Spain and Peru. The Condestable Mine, located in Peru approximately 90 km south of Lima, operates at 2.2 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas Mine is in the Andalucia region of Spain approximately 110 km north-west of Seville and operates a 1.7 million tonnes per year underground mine and concentrator that produces copper, zinc and bulk copper/lead concentrates that also contain gold and silver.
FORWARD LOOKING STATEMENTS:
This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward- looking statements. Forward-looking statements are frequently characterized by words such as "plan", "except", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based included that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Iberian and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the annual Management's Discussion and Analysis and Annual Information Form for Iberian filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Iberian has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Iberian undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts
Laura Sandilands
Iberian Minerals Corp.
Investor Relations and Corporate Communications
416-815-8558 |
