Iberian Minerals Corp.

Iberian Minerals Corp.

November 10, 2006 15:16 ET

Iberian Minerals Corp.-Subscription Receipts Exercised

TORONTO, ONTARIO--(CCNMatthews - Nov. 10, 2006) - Iberian Minerals Corp. (the "Company") (TSX VENTURE:IZN) is pleased to announce that the Company has received a further $2,088,774 in proceeds released from escrow as a result of the voluntary early exercise of 2,745,000 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 all 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.

This early exercise is in addition to those previously announced in recent press releases, bringing the total received in proceeds released from escrow as a result of the voluntary early exercise of 17,130,000 subscription receipts to $13,005,070 (this amount includes the release to the Company of interest earned while funds were held in escrow).

A total of 30 million subscription receipts, representing $22.5 million, were originally outstanding from the April 28th bought deal financing. Over half of the holders of these subscription receipts have now voluntarily elected to exercise their receipts into common shares of the Company. The right to voluntarily exercise these subscription rights expires at the close of business on November 16th 2006. If the terms of the escrow conditions have not been fulfilled by that date, the original investment amount, plus accumulated interest, will be returned to the holders who have not exercised their subscription receipts.

The Company would also like to announce that it has received the balance of $588,000 due to the Company pursuant to the sale of common shares of Simberi Mining Corporation by the Company to Porphyry Inc. The details of the share purchase agreement concerning this transaction can be found in the press release issued on August 22, 2005.

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 VENTURE under the symbol IZN, as of November 9th, 2006 there were 147,577,614 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