Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

February 02, 2010 09:00 ET

Iberian Minerals Receives Aguas Tenidas Reagent Permits

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2010) - Iberian Minerals Corp. (TSX VENTURE:IZN) is pleased to announce that the relevant authority of the Junta de Andalucia has issued the environmental authorization which will permit the use of six new reagents for the operation of the new modular Cu/Pb flotation separation circuit at the Aguas Tenidas Mine. The six permitted flotation reagents are zinc cyanide, sodium dichromate, activated carbon, cellulose, sodium hypophosphate, and sodium bisulphite. The permitted use of zinc cyanide and sodium dichromate are considered the key reagents required for the new copper and lead separation circuit. With this authorization the Aguas Tenidas Mine is able to proceed with ordering zinc cyanide and the other reagents to be delivered to the site by mid-February.

As previously announced, the installation of the modular copper and lead separation circuit is within the existing polymetallic flotation circuit at the Aguas Tenidas processing plant. The mechanical and electrical installation of this circuit is now completed and the circuit is in the commissioning phase with water testing of the circuit now underway. The modular Cu/Pb flotation separation circuit will process bulk copper and lead concentrate from the polymetallic circuit to produce separate copper and lead concentrates, and is expected to be fully operational by the end of February 2010.

The Company will either blend copper concentrate produced from the modular Cu/Pb flotation separation circuit with copper concentrate produced from processing copper ore, or ship each copper concentrate separately with the objective to continually maximize revenue from copper concentrate sales. Lead concentrate produced from the separation circuit, which will contain important quantities of silver, will be shipped by container to overseas customers located primarily in Asia. 

Daniel Vanin said: "This is another important step and milestone achievement for Aguas Tenidas. We will now be producing our three separate concentrates – copper, zinc and lead – in a manner that is acceptable to us. Full environmental controls and safeguards are in place for the use of the additional reagents."

Related Party Transaction

Iberian also announces that its wholly-owned subsidiary, Minas de Aguas Tenidas S.A. ("MATSA"), has entered into an unsecured loan agreement with Trafigura Beheer B.V. ("Trafigura") in the principal amount of US$2.4 million. The loan is considered to be in the ordinary course of business and intended to give MATSA immediate access to cash while it awaits payment from the Spanish authorities of a Spanish VAT receivable of approximately €1.9 million, which payment is expected to occur on or before March 31, 2010. The loan is consistent with past practice.

Pursuant to Multilateral Instrument 61-101 ("MI 61-101"), the loan is a related party transaction with Trafigura. Iberian is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a) and 5.7(a) of MI 61-101 as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction will exceed 25% of Iberian's market capitalization.

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.

Contact Information

  • Iberian Minerals Corp.
    Laura Sandilands
    Investor Relations and Corporate Communications
    416-815-8558