Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

May 12, 2009 08:49 ET

Iberian Minerals Corp. Announces $40 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwire - May 12, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

Iberian Minerals Corp. ("Iberian") (TSX VENTURE:IZN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Capital Corporation, Wellington West Capital Markets Inc. and Paradigm Capital Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase 76,925,000 special warrants ("Special Warrants") at an issue price of $0.52 per Special Warrant by way of private placement for gross proceeds to Iberian of approximately $40 million (the "Offering").

Each Special Warrant is exercisable into one common share (the "Common Shares") of Iberian. The Company will use its best efforts to obtain a receipt for a final short-form prospectus within 60 days of closing of the Offering which will qualify for sale the Common Shares underlying the Special Warrants issued pursuant to the Offering. In the event that such date is not met by Iberian, each Special Warrant will thereafter entitle the holder thereof to receive, at no additional cost, 1.1 Common Shares (instead of one Common Share).

Iberian has also granted the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 7,693,000 Special Warrants to cover over-allotment, if any, for additional gross proceeds of up to approximately $4 million. The Underwriters' Option is exercisable in whole or in part up until 24 hours before the closing of the Offering.

Iberian plans to use the net proceeds from the Offering to fund its 2009 capital program and for general corporate purposes.

Trafigura Beheer B.V. ("Trafigura") has advised the Underwriters of its intention to purchase Special Warrants under the Offering to maintain its approximate pro rata ownership interests in Iberian. Trafigura currently holds approximately 41.2% of Iberian's issued and outstanding Common Shares.

The Offering is scheduled to close on or about May 26, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

This press release is not an offer of Special Warrants for sale in the United States. The Special Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

ABOUT IBERIAN MINERALS CORP.:

Iberian is a Canadian-based global copper and zinc 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 a copper-zinc project in the Andalucia region of Spain approximately 110 km north-west of Seville. Commissioning is underway on a 1.7 million tonnes per year underground mine and concentrator (1.5 million tonnes during ramp up) that will produce copper and zinc concentrates that also contain gold, silver and lead.

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 information form of Iberian dated April 30, 2009 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 has neither approved nor disapproved the contents of this press release.

Contact Information

  • Iberian Minerals Corp.
    David Poynton, Senior Vice-President,
    General Counsel and Corporate Secretary
    (416) 815-8558