LONDON, UNITED KINGDOM and TORONTO, ONTARIO -- (Marketwired) -- 08/19/13 -- Minera IRL Limited ("Minera IRL" or the "Company") (TSX: IRL)(AIM: MIRL)(BVL: MIRL), the Latin American gold mining company, is pleased to announce that it has entered into a definitive agreement (the "Agreement") with Compania Inversora en Minas ("CIMINAS") for 100% of the financing required to develop the Don Nicolas Gold Project in Santa Cruz Province, Argentina.
All figures are in United States ("US") dollars unless otherwise noted.
1. 100% of Don Nicolas Project financing secured from Argentina sources for a total consideration up to $ 80 million2. Minera IRL will retain 51% equity in Minera IRL Patagonia S.A. ("MIRL Patagonia" the subsidiary of Minera IRL which holds the Company's Argentinean assets). CIMINAS will invest $45 million as a capital contribution in exchange for a 45% interest in MIRL Patagonia and 9.1 million ordinary shares in Minera IRL. An additional 4% equity in MIRL Patagonia will be issued to the arrangers of the transaction3. In addition, CIMINAS has made arrangements to provide a bridge loan facility for up to $35 million bringing the total funds available to develop Don Nicolas to $80 million4. The Don Nicolas Project is fully permitted and project development can commence immediately. An EPCM consortium has been selected to build the mine and infrastructure. Gold production, estimated in excess of 50,000 ounces per annum, is expected to commence in late 20145. CIMINAS is a company formed by a group of established Argentine private capital investors with a mission to invest in projects in Argentina with high medium- and long-term growth potential, and with a main focus on creating export revenue
Mr. Courtney Chamberlain, Executive Chairman of Minera IRL, commented, "We are delighted to have financing in place to develop the Don Nicolas Project. Our resource base, experience and highly prospective land position, augers well for a solid and enduring mining venture."
Dr. Diego Benavides, President of MIRL Patagonia, added, "We have developed excellent relationships with representatives of CIMINAS who complement our mining experience with their business experience in Argentina, long established contacts and knowledge in terms of employment, industry and government regulations. Together, we make a responsible and diverse team committed to growth."
Mr. Fabio Rozenblum, President of CIMINAS, said, "This is an excellent investment opportunity for a productive precious metals project that is fully permitted and ready to develop. We are delighted to have a partnership with this team formed by recognized professionals of the mining industry to manage the creation of direct and indirect employment and services resulting in a benefit for Argentina and the region. We believe the Don Nicolas Project is a solid investment opportunity and is of a size and scope that provides us with an ideal entrance into the mining industry."
CIMINAS has agreed to provide financing for up to a total of $80 million, to be made up of a combination of equity and debt, for the development of the Don Nicolas Gold Project in Santa Cruz Province, Argentina.