Iberian Minerals Corp.

Iberian Minerals Corp.

November 09, 2006 10:22 ET

Iberian Minerals Corp.: Dundee Resources Limited and Trafigura Beheer B.V. Exercise Pre-Emptive Rights to Acquire 3,406,154 Special Warrants

TORONTO, ONTARIO--(CCNMatthews - Nov. 9, 2006) - Iberian Minerals Corp. (the "Company") (TSX VENTURE:IZN)is pleased to announce that pre-emptive rights (the "Pre-Emptive Rights") held by Dundee Resources Limited ("Dundee") and Trafigura Beheer B.V. ("Trafigura") to acquire an aggregate of 3,406,154 special warrants (the "Special Warrants") of the Company have been fully exercised, resulting in an aggregate investment of C$4,428,000 in the Company by Dundee and Trafigura.

Dundee has purchased 2,846,154 Special Warrants at C$1.30 per Special Warrant, for a total additional investment of C$3,700,000. Each Special Warrant is comprised of one common share of the Company (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 C$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 C$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 (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.

Trafigura has purchased 560,000 Special Warrants at C$1.30 per Special Warrant, for a total additional investment of C$728,000, on the same terms as those stated above.

The gross proceeds of the issuance and sale of the Special Warrants (the "Escrowed Proceeds") will be held in escrow. The Escrowed Proceeds (plus accrued interest thereon, if any) will be automatically released to the Company only upon (i) the Company's Spanish subsidiary receiving the permit from the applicable Spanish authorities for Ampliacion de la actividad en Mina de Aguas Tenidas con la Construccion de una Planta de Tratamiento de Mineral y un Deposito de Esteriles (Expansion of the activity at Aguas Tenidas Mine with a Construction of an Ore Treatment Plant and Tailings Deposit) and (ii) the issuance of 30,000,000 common shares pursuant to previously issued installment receipts (conditions (i) and (ii) referred to collectively as the "Escrow Release Condition"), all on terms and conditions satisfactory to purchasers of Special Warrants, acting reasonably. The Special Warrants will be exercisable by the holders thereof at any time and will be automatically exercised (without any further action by the holders thereof) concurrently with the satisfaction of the Escrow Release Condition. The Special Warrants and the securities exercisable upon the exercise thereof are subject to a four-month hold period pursuant to applicable securities legislation, which expires on March 9, 2007. If the Escrow Release Condition is not satisfied on or prior to December 31, 2006 (the "Deadline Date"), the Escrowed Proceeds plus accrued interest thereon (if any) shall be used by the Company to repurchase the outstanding Special Warrants for cancellation at a price (the "Redemption Price") equal to the issue price thereof, plus the interest accrued (if any) on the Escrowed Proceeds.

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 this year, 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). The project has sufficient reserves for a 13 year operating life at a production rate of 1.60 million tonnes annually. 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.

The Company is in the process of arranging a financing package for the project through a combination of project bank debt, subordinated debt, and equity. Construction is expected to begin in the fourth quarter of 2006, with initial commercial production of metal concentrates commencing in 2008.

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

Iberian Minerals Corp. trades on the TSX-V under the symbol IZN. As of November 7, 2006 there were 145,327,614 shares issued and outstanding.

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