Dundee Resources Limited

November 09, 2006 09:15 ET

Dundee Resources Limited Acquires Special Warrants of Iberian Minerals Corp.

TORONTO, ONTARIO--(CCNMatthews - Nov. 9, 2006) - In accordance with regulatory requirements, Dundee Resources Limited ("Dundee Resources") announced today that it has acquired through a non-brokered private placement with Iberian Minerals Corp. ("Iberian"), 2,846,154 special warrants of Iberian ("Special Warrants") at $1.30 per Special Warrant, for a total investment of $3.7 million. Each Special Warrant entitles the holder to acquire one common share of Iberian, one-quarter of one series 1 common share purchase warrant and one-quarter of one series 2 common share purchase warrant. Each whole series 1 warrant will entitle the holder at any time for a period of two years from the date of issuance thereof to acquire one share at an exercise price of $2.20. Each whole series 2 warrant will entitle the holder at any time for a period of two years from the date of issuance thereof to acquire one share at an exercise price of $2.60. Notwithstanding the foregoing, each whole series 2 warrant is exercisable by the holder for an additional two years from the last day of the initial exercise period if, during the initial exercise period, the company becomes classed as a Tier 1 company on the TSX Venture Exchange, lists on the Toronto Stock Exchange or is otherwise permitted by applicable regulations to issue common share purchase warrants exercisable for four years. This transaction represents an approximate 2.86% interest in Iberian, assuming the exercise of all Special Warrants held.

Following this transaction, Dundee Resources will own an approximate 19.07% interest in Iberian assuming the conversion of the Special Warrants and the $25 million convertible subordinated debenture ("Subordinated Debenture") acquired on July 26, 2006. In addition, affiliates of Dundee Resources have control and direction over 500,000 warrants convertible into 500,000 common shares ("Warrants"), which represents an approximate 0.28% interest in Iberian. Together, Dundee Resources and affiliates, own or control, or have control and direction over, an approximate 19.35% interest in Iberian assuming the conversion of the Subordinated Debenture, the Warrants and Special Warrants held.

The position in Iberian was acquired by Dundee Resources for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation.

Dundee Resources is a wholly owned subsidiary of Dundee Corporation (TSX:DBC.A) and carries out Dundee Corporation's resource investments and initiatives.

Contact Information

  • Dundee Resources Limited
    Ned Goodman
    Chairman
    (416) 365-5665
    or
    Dundee Resources Limited
    Murray John
    President & Chief Executive Officer
    (416) 365-5645