Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

September 21, 2007 10:20 ET

Iberian Signs Updated Mandate Letter with Investec for US$200 Million Credit Facility

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2007) - Iberian Minerals Corp. (TSX VENTURE:IZN) ("Iberian") is pleased to announce that it has signed a revised and updated mandate letter (the previous mandate letter for US$65 million was press released on July 13th 2005) with Investec Bank (UK) Ltd ("Investec") to act as lead underwriter in providing debt and hedging facilities, which include the following:

a) A five and a half year amortising term loan facility of US$160 million. The facility will be repaid in semi-annual instalments starting on or before 30 June 2009;

b) A cost overrun facility of US$30 million, which will have the same tenure as the term loan and will be available to fund capital cost overruns and the debt service reserve account;

c) A five and a half year convertible loan facility of US$10 million which will be used alongside the term loan to fund development capital costs of the project;

d) Arranging with a local Spanish bank a VAT receivables facility of up to US$20 million.

The terms and conditions, such as fees, hedging requirements and interest rates, of the credit facility reflect: i) those generally available today for base metal mines operating in a First World country, and ii) the results of the recently completed update to the January 2006 SRK Feasibility Report.

Both Iberian and Investec anticipate that the signing of the final credit agreement will take place in approximately 4-6 weeks time and that the first drawdown on the loan facility will occur late in 2007 or early next year.

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 LOI regarding the purchase of approximately 92% of the issued and outstanding shares of Compania Minera Condestable ("CMC") from Tafigura Beheer B.V. Amsterdam ("Trafigura") (press release September 19th 2007) 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.

Contact Information

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