Antares Minerals Inc.
TSX VENTURE : ANM

Antares Minerals Inc.

July 23, 2009 08:30 ET

Antares Announces Completion of $6 Million Investment by IFC

WATERDOWN, ONTARIO--(Marketwire - July 23, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Antares Minerals Inc. ("Antares" or the "Company") (TSX VENTURE:ANM) is pleased to announce the successful completion of the $6 million private placement with International Finance Corporation ("IFC"), the member of the World Bank Group focused on private sector investments in developing countries. The private placement consisted of five million units at $1.20 per unit, each unit consisting of one common share and three-quarters of a common share purchase warrant. Each whole common share purchase warrant entitles IFC to acquire a common share at an exercise price of $2.00 for a period of five years from closing. If at any time following two years from the closing date, the Company's common shares trade at $2.75 or higher for 30 days on a volume weighted-average basis, the Company can give notice accelerating the expiry date of the warrants to 60 days following the date of such notice.

Proceeds of the financing will be used to advance the Company's Haquira project in Peru. The 2009 drill program is expected to commence this week. The initial phase of the program will utilize four rigs and will test four new exploration targets within the immediate area of influence of the known mineralization at Haquira, including the adjoining Cristo de los Andes property that was optioned last year from Southwestern Resources (since acquired by Hochschild Mining PLC). All four of these exploration targets have the potential to add significant tonnage to the already sizeable Haquira deposit (8.6 billion lbs contained Cu at a 0.2% cutoff).

About Antares

Antares is focused on the acquisition and exploration of precious and base-metal exploration properties in Latin America that can be quickly and cost-effectively advanced to the discovery and production stage. In addition to the Haquira project in Peru, Antares is also currently exploring the Rio Grande (Cu-Au porphyry) project in Salta Province of NW Argentina in a 50/50 joint-venture basis with Pachamama Resources Ltd., a spin-off from Mansfield Minerals Inc.

The Haquira project offers potential for a low-strip, low-cost SX-EW operation as well as a good opportunity for an underlying higher grade primary porphyry copper-molybdenum deposit. Antares has an option agreement with Minera Phelps Dodge del Peru S.A.C. to acquire a 100% interest in the Haquira project by completing optional payments totaling US$15 million over a five-year period (see Antares press release dated March 17, 2005). A total of US$10 million has been paid to date with the remaining US$5 million due on or before March 4, 2010.

Antares has announced an updated resource estimate (October 9, 2007) and Preliminary Economic Assessment (May 14, 2008) for the near-surface, SX-EW amenable portion of the Haquira project. This portion of the Haquira project hosts an indicated resource of 133.7 million tonnes at 0.53% total Cu with an additional inferred resource of 43.6 million tonnes at 0.44% total Cu (0.3% total Cu cut-off, leachable secondary copper sulphide and oxide mineralization only). This resource is projected to support a 50,000 t/d SX/EW heap leach operation that will produce an average of 109 million lbs of copper cathode for 11 years of mine life. The capital cost to construct the operation was estimated at US$301 million with a projected IRR of 26.9% and an NPV of US$224 million utilizing a copper price of US$2.00/lb and a discount rate of 8%.

Antares has also recently announced the first interim resource estimate for the underlying primary Cu-Mo-Au mineralization at the Haquira East zone based upon drill holes up to AHAD-120 (November 24, 2008). The Haquira East primary mineralization includes an indicated resource of 147.9 million tonnes at 0.57% Cu and 0.015% Mo, an inferred resource to a depth of 700m of 205.2 million tonnes at 0.56% Cu and 0.014% Mo and an additional inferred resource below 700 m depth of 99.4 million tonnes at 0.46% Cu and 0.008% Mo. Mineralization remains open to depth and several directions laterally. Additional drill holes that have been released after the completion of the interim resource calculation include hole AHAD-159 which intersected 937 m of 1.14% Cu, 0.034% Mo and 0.1 g/t Au - the best hole completed at Haquira to date.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC's new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.

This press release is not an offer of securities for sale or solicitation of an offer of securities for sale in the United States. The Company's securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, (the "US Securities Act") or state securities laws and may not be offered or sold in the United States or to US persons absent registration under the US Securities Act and state securities laws or applicable exemptions from the registration requirements of such laws.

All of Antares' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by, or prepared under the direct supervision of John Black, Antares' President, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Antares' security, chain of custody and quality control is described on their website and can be reviewed at: http://www.antaresminerals.com/bestpractices/samplingmethodologies

Mineral resources do not have demonstrated economic viability and future in-fill drilling and scoping, pre-feasibility and feasibility studies will determine what percentage of the inferred resource can be placed into the mineable category. Antares is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue which may materially affect this estimate of mineral resources.

Certain disclosure in this release, including the completion and closing of the private placement, management's assessment of Antares' plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Antares' operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.

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

Contact Information

  • Antares Minerals Inc.
    John Black
    President and CEO
    (720) 514-9036 or Cell: (303) 618-7797
    Email: john.black@antaresminerals.com
    or
    Antares Minerals Inc.
    Mark Wayne
    CFO
    (403) 705-4968