Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

December 19, 2007 17:46 ET

Iberian Shareholders Approve Acquisition of Producing Copper Mine in Peru

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2007) - Iberian Minerals Corp. (TSX VENTURE:IZN)("Iberian") is pleased to announce that shareholders at the special shareholders meeting held today, voted 93.9 % in favor of approving the acquisition of 92% of the issued and outstanding shares of Compania Minera Condestable ("CMC") from Trafigura Beheer B.V. ("Trafigura").

Jeremy Weir, Iberian director and Executive Director of Trafigura states "Trafigura is delighted at the support given by Iberian shareholders by approval of the acquisition. Both Trafigura and Iberian will continue to build upon this success as we work together to create a mid-tier, multi-mine entity. We are also pleased to announce an undertaking by Societe Generale for an up to US$75 million pre-export finance facility against production from CMC. This facility may be used to complete the equity required under the project financing facility currently being negotiated for the Aguas Tenidas project."

In addition to approving the acquisition, the shareholders of Iberian voted in favour of terminating the Company's rights plan and in favour of adopting a new general by-law, all as set forth and Company's management information circular dated November 20, 2007.

CMC is the owner and operator of the Condestable Mine, and lessee of the Raul Mine (collectively the "Condestable Mine") located 90 km south of Lima in Peru. The Condestable Mine has been in continuous production since 1998 and has produced copper and gold in concentrates as outlined in the table below.



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Product- 2007
ion Unit 2001 2002 2003 2004 2005 2006 (June)
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Ore
treated MT 639,871 713,633 867,845 1,006,435 1,319,704 1,500,154 739,560
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Ore
treated
(daily
average)MT/D 1,753 1,955 2,378 2,757 3,616 4,110 4,063
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Concent-
rate
produced MT 33,921 37,306 43,518 48,136 60,912 68,954 33,775
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Fine
copper
produced MT 9,101 9,531 11,295 12,590 15,922 18,267 8,456
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Fine
gold
produced OZ 5,269 7,493 8,263 9,767 11,360 13,501 5,918
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Fine
Silver
produced OZ 76,152 102,631 124,149 130,683 152,550 153,500 72,552
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Source: CMC annual report and interim filings made in compliance with
Peruvian securities laws.


For the financial information in respect of CMC and the proforma financial information of the resulting issuer please refer to the Management Information Circulated of Iberian dated November 20, 2007, available at www.sedar.com.

Peter Miller states "We welcome the result of the shareholder vote as an endorsement of the Company's growth strategy. Upon closing of this transaction Iberian will be a copper and gold producer, whose production of base metals will be substantially enhanced once the Aguas Tenidas Mine reaches anticipated production late 2008. We warmly welcome the financial and technical strengths being brought to Iberian by the Trafigura group."

As partial consideration for the acquisition the Company will issue to Trafigura 65,990,833 common shares in the capital of the Company ("Common Shares") at a deemed price of $1.80 per Common Share for a deemed aggregate issue price of US$115 million (exchange rate of US$1.00 equals $1.0329). Trafigura will also been granted a 46% net operating profit ("NPI") of CMC for a term of four years commencing January 1, 2011 payable in cash or, at the option of Trafigura and subject to regulatory approval, including the approval of the TSX Venture Exchange, in Common Shares. Iberian shall have the right until June 30, 2011 to purchase the NPI from Trafigura for US$60 million. The acquisition of CMC is anticipated to close on or about January 30, 2008 after the completion of requisite documentation and regulatory approvals being obtained.

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 2006, 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). Elements of this feasibility report have been updated by Adam Wheeler and RSG Consulting Pty Ltd. (press release of May 22, 2007), which is available at www.sedar.com. In addition to the approved acquisition of approximately 92% of the issued and outstanding shares of CMC from Trafigura, the Company has also signed a long-term offtake agreement with Trafigura for the sale of all its metal concentrates from Aguas Tenidas. In addition to the Aguas Tenidas project the Company, through MATSA, holds an extensive land position of exploration properties within the Iberian Pyrite Belt.

About Trafigura Beheer B.V. Amsterdam

Trafigura is one of the largest independent commodities traders worldwide today, with 1500 people operating 50 offices in 35 countries. Incorporated in the Netherlands and privately owned by management and personnel, Trafigura is the 3rd largest independent oil trader and 2nd largest base metal trader in the world. Company turnover in 2006 was $45 billion.

Trafigura currently holds 39,429,858 Common Shares, representing approximately 21% of the issued and outstanding Common Shares and on closing of the acquisition will hold 105,420,691 Common Shares representing approximately 42% of the issued and outstanding Common Shares.

About Societe Generale

Societe Generale is one of the leading financial services groups in the euro zone. It's corporate and investment banking arm ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance. Societe Generale Corporate & Investment Banking's natural resource banking group provides comprehensive mining and metals financial services ranging from the pre-feasibility stage to project construction to structured commodity finance.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws concerning Iberian's transactions with Trafigura. 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. Forward-looking 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 transactions will be completed, that all required third party regulatory and governmental approvals for transactions will be obtained and all other conditions to completion of the transactions will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Iberian or Trafigura 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 failure to reach definitive agreements in respect of the contemplated transactions, as well as 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.
    Peter Miller
    (416) 815-8558
    or
    Iberian Minerals Corp.
    Norm Brewster
    (416) 815-8558