EDMONTON, ALBERTA–(Marketwired – March 7, 2017) – Iberian Minerals Ltd. (the “Company” or “Iberian“) (TSX VENTURE:IML)(OTCQB:SLDRF), an innovative developer and provider of environmentally-friendly advanced gold mining extraction technologies, today released a Corporate Update from Greg Pendura, its CEO.
Dear investors and fellow shareholders;
Updates on our Spanish assets will be addressed shortly. I want to focus this Corporate update on the anticipated spin-out of our EnviroLeach subsidiary to enable everyone to fully understand and appreciate the future working relationship between Iberian Minerals/Mineworx and EnviroLeach and the significant benefits that both companies and our shareholders will experience with this alliance. It is an exciting time for Iberian. The company continues to cultivate and develop strong relationships with advanced stage mining companies with the goal to become a near-term, cost effective and profitable gold producer utilizing our proprietary technologies.
With the spin-out of our EnviroLeach subsidiary, Iberian’s wholly owned subsidiary – Mineworx will hold an exclusive license in perpetuity to use the EnviroLeach, patent-pending, non-cyanide gold leaching process. The EnviroLeach process will become a valued added innovation to Iberian’s existing business model, which currently features the Mineworx, patent-pending HM X-tract and HM X-mill technologies.
Mineworx Business Model
The unique Mineworx business model is to seek out advanced-stage mineral deposits on which to employ its portable processing technologies and to partner with the existing owners and operators to advance these deposits to profitable production in a timely manner.
In addition, Mineworx will become the exclusive technology/systems integrator for the continued design, development and installation of the EnviroLeach process pilot plants and full-scale production facilities. This relationship will leverage and extend the Iberian team’s expertise in design-build capabilities to the development of specialized industrial modular process systems and facility construction for the deployment of EnviroLeach systems globally in both the mining and E-Waste management sectors. We are confident that this new “green” initiative will drive new immediate and long term revenue channels to Iberian.
Our aggressive plans for 2017 encompass steps to attain near-term cash flow and enhance growth in both the mining and technology divisions. Iberian will continue to build a portfolio of near-term, small to mid-sized mining assets which will utilize our environmentally friendly and proprietary extraction technologies. In addition further benefits will result from the exposure to the E-Waste management sector resulting in the additional revenue streams from our new technology integration division.
Iberian continues to be an early and primary mover in these areas with patent pending and proprietary environmentally friendly mobile extraction and grinding technologies. With few competitors or competition in these areas currently, these advantages will act as a barrier to entry for future competitors.
After receiving the anticipated shareholder voting approvals at the upcoming March 14th Special Meeting, Iberian will engage in the spin-out of its subsidiary, EnviroLeach Technologies Inc. This transaction will result in the Iberian shareholders receiving approximately one share of EnviroLeach for every 10 shares of Iberian owned. Iberian will also receive 2 million shares of EnviroLeach, cash payments of $1.6 million and the exclusive license to continually use the EnviroLeach product along with any enhancements on all present and future Iberian/Mineworx mining projects. The Company will provide a further update on the anticipated EnviroLeach stock exchange listings for our Canadian and U.S. shareholders very shortly.
This transaction has been carefully evaluated by the Board of Directors and is considered favorable to Iberian and the shareholders of Iberian for numerous reasons, including:
- attractive and immediate value to the Iberian shareholders
- enhanced business model
- less dilution of ownership
- less dilutive risk exposure
- enhanced diversity of holdings
- more favorable and less dilutive financing terms
- enhanced liquidity of both companies
- more focused business units
- higher valuations for both companies due to the variance of sector specific valuation metrics
- the broadening of the potential shareholder base of EnviroLeach to include a larger base of non-mining centric funds.
The benefits to Iberian/Mineworx include:
- enhanced business model
- diminished industry specific risk
- leverage of existing technology and teams
- exposure to the growing E-Waste sector
- increased revenues and enhanced market valuation metrics.
About Iberian Minerals
Iberian Minerals is a Canadian junior mining company positioned for growth through the partnership of advanced cash flow mining opportunities utilizing the Mineworx environmentally friendly mineral processing technologies. In addition the Company is undertaking strategic alliances with its Spanish minerals assets.
For further information, go to www.iberianminerals.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”), including statements regarding Iberian’s business. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Iberian’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Iberian believes that the expectations in the forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Iberian does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
V.P. Corporate Development
ENVIROLEACH TECHNOLOGIES INC.