Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

June 25, 2008 16:00 ET

Iberian Amends Credit Agreement with Trafigura

TORONTO, ONTARIO--(Marketwire - June 25, 2008) - Iberian Minerals Corp. (TSX VENTURE:IZN) ("Iberian") Iberian is pleased to announce that it has entered into an amended and restated credit agreement ("Amended Credit Agreement") with Trafigura Beheer B.V. ("Trafigura").

The Amended Credit Agreement provides for an unsecured facility of up to US$125 million which is to be used by Iberian to fund development requirements of the Aguas Tenidas project (the "Development Advances") and for the purposes of funding margin calls, if any, associated with the hedging requirements pursuant to the previously announced project financing (the "Aguas Tenidas Project Financing") entered into in connection with the development of the Aguas Tenidas mine ("Margin Advances"). The Amended Credit Agreement provides for multiple drawdowns and bears interest at LIBOR + 1% per annum and repayable in cash upon the maturity date. Any outstanding principal amount plus applicable interest relating to Development Advances is due upon on the initial draw down on Aguas Tenidas Project Financing. Any outstanding principal amount plus applicable interest relating to Margin Advances is due when all permitted hedging arrangements required pursuant to the Aguas Tenidas Project Financing have been terminated. Iberian shall have the right to prepay any amount outstanding under the Amended Credit Agreement without penalty. The Amended Credit Agreement also provides for mandatory repayment in certain conditions. No structuring fee or other financing fee is payable by Iberian in connection with the entering into of the Amended Credit Agreement.

Pursuant to Multilateral Instrument 61-101 ("MI 61-101"), the entering into of the Amended Credit Agreement is a "related party transaction" as Trafigura currently holds 105,420,691 Common Shares representing approximately 41.5% of the issued and outstanding shares of the Corporation. The Corporation is exempt from the formal valuation requirement of MI 61- 101 in connection with entering into of the Amended Credit Agreement in reliance on section 5.5(c) of MI 61-101 as no securities of the Corporation are listed or quoted for trading on the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock market or a stock exchange outside of Canada and the United States. Additionally the Corporation is exempt from obtaining minority shareholder approval in connection with entering into of the Amended Credit Agreement in reliance on section 5.7(1)(f) as the Amended Credit Agreement is on reasonably commercial terms that are not less advantageous to the Corporation than if the loan were obtained from an arm's length party; the Amended Credit Agreement is not convertible into common shares; and no principal amount or interest is repayable in common shares of the Corporation.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian-based global copper and zinc company with developing and producing interests in both Spain, the Aguas Tenidas Project and Peru, the Condestable Mine. Iberian Minerals Corp. is well-funded with a strong, experienced management team and a significant partner in it's largest shareholder, Trafigura Beheer B.V.

This press release does not constitute an offer of securities in the United States, Canada or elsewhere. The securities of Iberian have not been, registered under the United States Securities Act of 1933, as emended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

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. Forwardlooking 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. 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 forwardlooking statements include changes in market conditions and other risk factors discussed or referred to in the management information circular of Iberian dated November 20, 2007 and in the annual Management's Discussion and Analysis 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.

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

Contact Information

  • Iberian Minerals Corp.
    Norman Brewster
    (416) 815-8558