Iberian Minerals Corp.

Iberian Minerals Corp.

September 07, 2007 13:02 ET

Iberian Minerals Corp. Announces Release of Funds from Escrow

TORONTO, ONTARIO--(Marketwire - Sept. 7, 2007) - Iberian Minerals Corp. (TSX VENTURE:IZN) ("Iberian") is pleased to announce that it received on Wednesday, Sept. 5th 2007, the sum of $3,830,084.19 from Dundee Resources Limited ("Dundee") as a result of satisfying the final release condition of the previously completed private placement of Special Warrants to Dundee. These conditions were met by: i) the receipt of permits and licences to construct and operate a tailings deposit and a processing plant at the Aguas Tenidas project, and ii) the conversion of 30,000,000 subscription rights into a similar number of Iberian common shares, which was completed on November 17th last year. This sum represents the gross proceeds, plus accrued interest, from the sale of an aggregate of 2,846,154 Special Warrants by Iberian to Dundee at a price of $1.30 per Special Warrant, which was completed on September 19th 2006.

As a result of satisfying the escrow release conditions, each Special Warrant held by Dundee shall automatically convert into one common share of Iberian (a "Share"), one quarter of one Series 1 common share purchase warrant (the "Series 1 Warrant") and one quarter of one series 2 common share purchase warrant (the "Series 2 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 (the "Initial Exercise Period") 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, Iberian becomes classed as a Tier 1 company on the TSX-V, lists on the Toronto Stock Exchange or is otherwise permitted by applicable regulations to issue common share purchase warrants exercisable for four years.

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). Elements of this feasibility report have been updated by Adam Wheeler and RSG Consulting Pty Ltd. (press release of May 22, 2007), which is available at www.sedar.com. 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.

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

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