Iron Mining Group, Inc. (OTCBB:IRNN), a global iron ore mining and investment company, announced that its wholly-owned subsidiary, Chile Inversiones de Minerales, Ltda. has completed the initial acquisition of 50% of the La Serena Iron Sands Mine with which will automatically increase to 70% upon the repayment of $1,040,000 of pre-existing debts through the sales iron ore from the property.
On closing, IMG assumed management control of the mine and two port development projects in Chile's Coquimbo region.
“Having completed this acquisition, IMG is on track to begin production and export of iron ore from the La Serena Beach Mine in early 2011 followed by further production from our Atacama Desert and Tocopilla projects by Q3 of 2011”
The "iron sands" property is known as the La Serena Beach Mine, which spans two kilometers by one half kilometer, includes an existing mineral exploitation concession and a pending marine concession. Once granted, this marine concession will allow the mining of iron ore located along the ocean floor up to two kilometers offshore. Based on geology and feasibility studies completed by the University of Santiago in 2009, the combined concessions are believed to contain up to 66,500,000 metric tons of recoverable high-grade iron ore located within the iron sands along the beach and the adjacent ocean floor, representing total estimated current market value of more than USD $9 billion. IMG plans to conduct further geological analysis and to subsequently file an initial 43-101 report on this property.
Upon approval of its environmental declaration, anticipated in Q1 of 2011, IMG plans initial monthly production of 60,000 metric tons for projected revenue of USD $8.7 million and seeks to increase production growth to 180,000 metric tons with revenues of USD $26 million per month by July 2011. Furthermore, with the acquisition of two port development projects, IMG is committed to investing in port infrastructure allowing for significant growth in its total iron ore export capacity. Each of the two new ports is planned to accommodate Cape-sized vessels with a combined annual loading capacity of up to 18,000,000 metric tons.
"Having completed this acquisition, IMG is on track to begin production and export of iron ore from the La Serena Beach Mine in early 2011 followed by further production from our Atacama Desert and Tocopilla projects by Q3 of 2011" said CEO, Garrett K. Krause. "We look forward to working with the regional authorities and the local community to make this project impactful and beneficial for everyone involved. Further, we will immediately begin advancing our two associated port projects with support of our Chinese partners in order to accommodate increased annual iron ore export volumes from Chile's Coquimbo region."
Source: Iron Mining Group, Inc.