Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

December 17, 2008 07:30 ET

Iberian Minerals Corp. Subsidiary Signs Exploration Joint Venture With Cadillac Ventures in Andalusia Region

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2008) - Iberian Minerals Corp. (TSX VENTURE:IZN) ("Iberian") announces that the Company's wholly-owned subsidiary, Minas de Aguas Tenidas, S.A. ("MATSA") has entered into a joint venture agreement (the "Agreement") with Cadillac Ventures Inc. ("Cadillac"), a Canadian junior exploration company (CNSX:CDC).

The Agreement relates to 14 properties comprising all or part of 24 Mining Concessions plus 6 Investigation Permits (one at application stage) totalling 231.9 km2 (the "Properties") in Huelva Province, in the Andalusia Region of southern Spain, adjacent to the Aguas Tenidas Mine (the "Mine") of MATSA.

Under the Agreement, a joint venture, to be known as the "MATSA Huelva Joint Venture", is established with Cadillac initially owning 1%, held for it by MATSA, with MATSA holding 99%. By expending $3 million in exploration expenditures at the Properties within two years, Cadillac may earn a 90% participating interest, with MATSA then holding a 10% carried interest; failing such expenditure, Cadillac will hold no interest in the Properties.

Once Cadillac earns a 90% interest, all future exploration expenditures continue to be funded by Cadillac (with an obligation to always maintain all of the Properties in good standing). Cadillac is operator of all exploration programs. At the point of a feasibility study on any one property or part thereof, that property is to be transferred to a new operating company from the joint venture, with a new agreement to be entered into with the parties being Cadillac 90% and MATSA 10%, both participating. MATSA then has the option to increase its interest to 35% (Cadillac 65%) by paying an amount equal to the expenditures of Cadillac at such property plus two times the cost of the feasibility study. In the case of the Santo Angel property (which includes the Angelita deposit), MATSA may, on paying those amounts, increase its percentage to 65% (Cadillac 35%).

If any party's interest reduces below 10%, it automatically converts to a 1% net smelter royalty. Both parties have granted the other rights of first offer in the event of any proposed transfers of interest. The joint venture agreement contains other usual terms for transactions of this type.

The Properties are considered non-core to Iberian and MATSA, and are not part of the current development plan for the Mine.

Daniel Vanin, President of Iberian said: "We are extremely pleased to have this new joint venture with Cadillac. We are focused right now on our Aguas Tenidas Project in Spain, and Condestable Project in Peru, such that at this stage, we consider the Properties important but non-core. They are not part of our current development plan for the Mine. Under the deal, Iberian and its shareholders are carried through to feasibility study, and continue to enjoy back-in rights in the future, together with rights of first offer, should we consider it appropriate."

The proposed transaction is subject to regulatory, creditor and other usual conditions. The proposed transaction is a "Reviewable Transaction" for purposes of applicable policies of the TSX Venture Exchange. Norman Brewster, the non-executive Chairman and a director of the Company, is President, CEO, director and a shareholder of Cadillac. There is no finder's fee in connection with this transaction.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian-based global copper and zinc company with developing and producing 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. Construction is nearing completion 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. Forwardlooking 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 management information circular of Iberian dated November 20, 2007 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 does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Iberian Minerals Corp.
    Victoria Vargas, Vice President
    Investor Relations and Corporate Communications
    (416) 815-8558