SOURCE: Tara Minerals Corp.

Tara Minerals Corp.

May 11, 2011 09:00 ET

Tara Minerals Secures Right to Mine Iron Ore Property

CHICAGO, IL--(Marketwire - May 11, 2011) - Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) is pleased to announce that it has reached an agreement for the right to mine the 3,233 hectare Tania Iron Ore property located in Manzanillo, State of Colima, Mexico. Tara has the right to remove 6 million tonnes of salable concentrate from the property, with perpetual renewal rights, extending through the life of the property. Tara will pay the vendor $6 per salable tonne for the first 500,000 tonnes removed from the property and $7 per tonne thereafter. A total of $100,000 will be advanced to the vendor against future royalty payments.

Tara is also pleased to announce that it has raised $750,000 through a royalty rights offering to advance the project. A portion of the funds will be used to secure appropriate environmental permits, export permits, and recovery process engineering.

The Tania property is located 33 km from the port of Manzanillo. The Iron is contained within decomposed granite with little overburden. On the surface, the mineralized zone is estimated to be 2 km wide and approximately 1 km in length. The zone is continuous and sampled 30-40% Iron. The property has not been subjected to modern exploration methods or concentrating processes.

Mr. Francis Biscan Jr., President of Tara Minerals Corp., commented, "Over the last few months, we have seen evidence of large established companies who have begun to position themselves in Mexico's Iron Ore market. Iron Ore has a sustainable growth profile with substantial operating margins. Our strength of recognizing value early has resulted in this significant rights acquisition, which we believe can be developed very quickly and is consistent with our goal to be a producer. We will continue to look for additional opportunities to enhance shareholder value."

About Tara Minerals Corp. (http://www.TaraMinerals.com)

Tara Minerals Corp. is advancing the development of its Don Roman mine and mill, located in Choix, Mexico and completing the Definitive Agreement with Yamana Gold Inc. that grants Yamana an option to acquire up to a 70% interest in the Picacho gold/silver project for a total of $20 million in expenditures, investments and payments. Management is focused on creating long-term shareholder value and deploying its capital to advance its projects by enhancing resources, further outlining new discoveries/targets, and acquiring additional strategic assets. Tara's strength in recognizing value early and strategy of reducing risk through a foundation of cash flow, positions it for low-risk value creation.

Contact Information

  • IR Contact:
    David Barefoot
    (888) 901-4550