Toronto, Canada-based mining company Anaconda Mining Inc. and privately owned Inversiones SBX Limitada ("SBX") announced Tuesday that they have agreed to combine their respective Chilean iron ore assets into a single dedicated company. The intention of the parties is to create a single structure resulting in one large Chilean iron ore vehicle.
Anaconda has an interest in two distinct iron exploration and development joint venture projects with SBX: Minera Hierro San Gabriel S.A. (MHSG), and Inversiones Hierro Antofagasta S.A. (IHA), and combining the joint ventures into one entity will simplify the current corporate structure. Detailed terms of the combination are currently being negotiated with the assistance of the company's financial advisors, Gryphon Partners.
President and CEO of Anaconda, Dustin Angelo, stated, "both Anaconda and SBX believe that given the positive demand fundamentals for iron ore, along with the favorable operating conditions and readily available infrastructure in the region, the value inherent to these assets now needs to be realized and developed. With the assistance of Gryphon Partners, we have a plan to build a scalable iron ore business with a view to maximizing the value for our shareholders."