Breaking News
Iberian Minerals Completes Raul Purchase and Condestable Senior Facility Refinancing
16:30 EDT Wednesday, March 31, 2010
TORONTO, ONTARIO--(Marketwire - March 31, 2010) - Iberian Minerals Corp. (TSX VENTURE:IZN) is pleased to announce that its subsidiary, Compania Minera Condestable S.A. ("Condestable"), has completed the closing of its senior secured debt facility (the "Facility") with Societe Generale acting as Sole Lead Arranger and Scotiabank Peru S.A.A. acting as Mandated Arranger and On-shore Collateral Agent for a total of US$ 55 million.
The US$ 55 million, 3 year facility, carries an interest rate of 3-month LIBOR plus 3%. In addition, Condestable will be required to hedge a certain percentage of its future copper production.
The proceeds of the facility will be used for the refinancing of the existing facility's balance and the repayment of a bridge loan provided by Trafigura Beheer B.V. for the acquisition of the Raul mining concessions and associated surface land rights. Trafigura is a related party to Iberian by virtue of its 46% shareholdings in the Company.
The existing facility, which closed for a total of US$ 70 million in May 2008, had an outstanding balance of US$ 25.5 million at the closing of this transaction.
The acquisition of the Raul concessions from Corianta S.A., including a consideration of US$ 28 million, was previously announced on December 23, 2009. As a result of this transaction, the company expects to realize annual savings of about US$ 6 million in royalty payments associated with the exiting Raul lease agreement.
Required hedging under the Facility will be executed in the coming days and announced by the Company in due course.
The Facility Agreement is posted on SEDAR at www.sedar.com.
