Iberian Minerals Corp.

Iberian Minerals Corp.

October 25, 2006 09:55 ET

Iberian Minerals Corp.: Subscription Receipts Exercised

TORONTO, ONTARIO--(CCNMatthews - Oct. 25, 2006) - Iberian Minerals Corp. (TSX VENTURE:IZN) (the "Company") is pleased to announce that the Company has received $1,263,512 in proceeds released from escrow as a result of the voluntary early exercise of 1,665,000 subscription receipts held by subscribers to the $30 million bought deal financing announced on April 28th, 2006. These subscribers have elected to exercise these receipts prior to fulfilment of the escrow conditions, namely the Company receiving the remaining permits required for the construction of a processing plant and tailings deposit at Aguas Tenidas.

The Company is presently concentrating on its operations in Spain which include the development of the Aguas Tenidas project and the recently announced 65,000 metre drill program that will focus on both the Aguas Tenidas project and the Company's extensive exploration license holdings within the Iberian Pyrite belt. (Press Release Sept 20th, 2006) As a result, the Company has determined at this time that it will not pursue the Sangold project any further, and consequently has written down the exploration costs incurred on this project.

Additionally the Company announces that it has issued 550,000 options to certain Spanish employees and consultants to the Aguas Tenidas project, exercisable at a price of $1.50 for a period of three years as to 300,000 of such options and five years as to 250,000 of such options.

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 Jan. 20th, 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 October 18th, 2006 there were 131,562,614 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 of accuracy of this release.

Contact Information

  • Iberian Minerals Corp.
    Peter Miller
    (416) 815-8558
    Iberian Minerals Corp.
    Norm Brewster
    (416) 815-8558