Toronto, Canada-based Anaconda Mining Inc. Tuesday announced that it has entered into an agreement to acquire interests in two significant iron exploration portfolios from a private Chilean company, Inversiones SBX Limitad (SBX). The exploration properties are located in north central Chile, within the Chile-Peru iron ore belt.
Under the terms of the agreement, Anaconda will acquire a 50 percent interest in iron exploration concessions located in the immediate area of Anaconda's San Gabriel Iron Project located near the coastal deep-water port of Chanaral.
In return for the acquisition of the Vetarron and Antonio concessions, SBX will acquire from Anaconda a 50 percent interest in Anaconda's San Gabriel property. SBX will fund the remaining US$2.2 million in payments related to the San Gabriel option. The combined
San Gabriel area assets will be held by a new company, Minera Hierro San Gabriel S.A., which will be owned on a 50:50 basis by Anaconda and SBX.
Anaconda will further receive a 20 percent interest in Inversiones Hierro Antofagasta S.A. (IHA), a private Chilean company which owns an 82.5 percent interest in Minera Hierro
Antofagasta S.A. (MHA). MHA is a private Chilean company that holds the rights to four main project areas east of the port city of Taltal.
Compania Minera Del Pacifico S.A. (CMP), a 75 percent-owned subsidiary of CAP S.A. (Chile's largest integrated iron miner and steel producer), presently has a 17.5 percent ownership stake in MHA and CMP may increase its interest in MHA to 37.5 percent by making staged exploration and property payments totaling US$15 million over the next 30 months.
Lew Lawrick, President and CEO of Anaconda states, "With this strategic transaction, we have established a strong local partner in SBX to assist in advancing San Gabriel to the development phase. Anaconda will immediately benefit from SBX's exploration expertise, their commitment to fund the remaining option costs, and the contribution of the additional property concessions in the vicinity of the San Gabriel deposit which have the potential to add to the total iron resource. Further, our investment in IHA gives Anaconda's shareholders the opportunity to participate in what has the potential to become a 'world class' iron district. This opportunity is readily enhanced by CMP's participation and significant funding commitment."
Anaconda is a Toronto, Canada-based mining and exploration company focused on advancing its principal assets.