Iberian Minerals Corp.

Iberian Minerals Corp.

January 12, 2007 15:57 ET

Iberian Receives Licence Required to Build Processing Plant and Tailings Dam at Aguas Tenidas

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2007) - Iberian Minerals Corp. ("IZN") (TSX VENTURE:IZN) is pleased to announce that it has received the building licence (Licencia de Obra) required for the construction of the ore processing plant, the tailings dam and all surface infrastructure at its wholly owned Aguas Tenidas project in SW Spain. The licence was received from the Municipality of Almonaster La Real.

Receipt of this licence permits construction to begin at Iberian's Aguas Tenidas project.

Peter Miller, Iberian's President is pleased with the Company's achievement of this milestone event: "This licence enables Iberian to embark on a new chapter in its corporate history - to commence construction of its first mine on its flagship asset, Aguas Tenidas."

The licence provides for certain requirements to be met by the Company, including posting certain guarantee and compensation amounts as provided for by applicable laws. In addition, the Company is still waiting for a permit from the government (Junta) of Andalucia, which will allow it to operate the ore processing plant and tailings dam, once construction is completed. In this regard, the Company has now supplied all the additional information requested by the authorities in early December 2006, plus has provided a detailed final engineering study on the proposed tailings dam, which was undertaken by Golder & Associates.

About Iberian Minerals Corp.

Iberian Minerals Corp., through its wholly owned subsidiary MATSA, is currently proceeding with the re-opening of the Aguas Tenidas copper/zinc project located in the Region of Andalucia, SW Spain. In January 2006, a feasibility report on the project was prepared by SRK Consulting of Cardiff UK, which demonstrated the technical feasibility and economic viability of the project (press release January 20, 2006). The project has sufficient reserves for a 13 year operating life at a production rate of 1.60 million tonnes annually. The Company has also signed a long-term offtake agreement with Trafigura Beheer AG for the sale of all its metal concentrates from Aguas Tenidas.

The Company is in the process of arranging a financing package for the project through a combination of project bank debt, subordinated debt, and equity. Site clearance, in preparation for the start up of construction, began in the fourth quarter of 2006.

In addition to the Aguas Tenidas project the Company, through MATSA, holds an extensive land position of exploration properties within the Iberian Pyrite Belt.

Iberian Minerals Corp. trades on the TSX-V under the symbol IZN. As of January 2nd, 2007 there were 163,013,614 shares issued and outstanding.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are in Canadian dollars unless otherwise noted.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Iberian Minerals Corp.
    Peter Miller
    (416) 815-8558
    Iberian Minerals Corp.
    Norm Brewster
    (416) 815-8558