Iberian Minerals Corp.

Iberian Minerals Corp.

November 01, 2006 16:24 ET

Iberian Places Major Equipment Order for Aguas Tenidas

TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2006) - Iberian Minerals Corp. (TSX VENTURE:IZN) Iberian Minerals Corporation ("IZN") is pleased to announce the following:

1. Iberian's wholly owned Spanish subsidiary, Minas de Aguas Tenidas SAU ("MATSA)", has placed a EUR 5.8 million ($8.2 million) order with Outokumpu Technology Oyj of Finland for 1,784m3 of flotation cells for use in its proposed new ore processing plant.

These tank cells, which will be manufactured in Spain, will be delivered over a 7-10 month period commencing May 2007.

2. Pursuant to the Company press release of June 16th 2006, Iberian has completed the purchase of an additional 51.6 hectares (127 acres) of surface rights at Aguas Tenidas from Piritas de Huelva SL at a total cost of EUR 180,000 ($250,000). MATSA's surface rights in the Aguas Tenidas district now total 198.7 hectares (489 acres) and are deemed by management to be more than sufficient for the Company's needs for the foreseeable future.

3. SW Spain has been subjected to unseasonably heavy rains during October this year. At Aguas Tenidas, approximately 270mm of rain, representing around one third of an average year's normal rainfall, fell over a 12 day period. Although localised flooding was experienced, no damage was reported at either the mine facilities or infrastructure.

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.

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 or Norm Brewster
    (416) 815-8558