WASHINGTON, DC and LIMA, Peru, June 25 /CNW/ - IFC, a member of the World
Bank Group, has agreed to buy an equity stake worth 6 million Canadian dollars
in Antares Minerals Inc. to support a copper exploration project expected to
generate jobs and government revenues for Peru once the mine is developed.
IFC's investment will help fund the completion of the pre-feasibility
studies and the continuation of environmental and social programs and
assessments for Antares' Haquira project, located in a remote part of the
Apurimac region in southern Peru. Antares is a Canadian-based mining company.
"IFC moved very quickly to put together an attractive financing package
which will enable us to continue to advance our Haquira project while still
maintaining a solid balance sheet," said Antares President John Black. "We
look forward to having the IFC as a new and significant shareholder in the
company. In addition to the capital that they are providing, they can greatly
assist us in our goal of developing the Haquira project to internationally
recognized best environmental and social practices."
Expansion of Peru's mining sector is vital to the country's economy.
Currently, the mining industry generates more than six percent of Peru's GDP,
contributes nearly 30 percent of all government tax revenues, and accounts for
close to 60 percent of the country's total exports.
"IFC's investment in Antares is a good example of how we provide junior
mining companies with capital at the pre-feasibility stage," said William
Bulmer, IFC's Global Head for Mining, "We are excited about a partnership with
Antares, a company that has demonstrated a strong commitment to environmental
and social good practice, including the early establishment of community based
IFC's strategy in Peru aims to promote sustainable development by
supporting private sector projects in priority industries such as the
financial sector, including microfinance, infrastructure, agribusiness, mining
and tourism. IFC also helps to enhance social benefits in the extractive
industries and has extensive programs to help improve investment climate for
local businesses. As of March 2009, IFC's total committed portfolio in Peru
was $970.79 million, including syndicated loans.
Legal Disclosure about IFC's Investment
The investment of 6 million Canadian dollars in Antares will result in
IFC acquiring 5,000,000 units issued by Antares. The units comprise an
aggregate of 5,000,000 common shares and 3,750,000 warrants, each of the
warrants entitling the holder to purchase one common share of Antares at an
exercise price of 2.00 Canadian dollars per common share for a period of five
years from the closing date, subject to earlier expiry in certain
circumstances. The issue price per unit is 1.20 Canadian dollars.
Upon completion of the investment, there will be 60.56 million
outstanding common shares of Antares and IFC will own approximately 8.26% of
the outstanding common shares. Assuming that the warrants are exercised in
full, IFC will then hold approximately 13.61% of the outstanding common
shares. The transaction is expected to close in early July, 2009, after the
conditions for closing are met.
IFC is acquiring the units for investment purposes as described above.
IFC may, in the future, take such actions in respect of its holdings as IFC
deems appropriate in light of the circumstances then existing. To obtain a
copy of the report filed with Canadian securities regulatory authorities to
which this news release relates, please contact Hannfried von Hindenburg at
the phone number or e-mail address referred to above.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic growth
in developing countries by supporting private sector development, mobilizing
private capital, and providing advisory and risk mitigation services to
businesses and governments. Our new investments totaled $16.2 billion in
fiscal 2008, a 34 percent increase over the previous year. For more
information, visit www.ifc.org. IFC's headquarters are located at 2121
Pennsylvania Avenue, N.W. Washington, D.C., 20433, USA.
For further information:
For further information: In Washington, D.C.: Hannfried von Hindenburg,
Phone: (202) 458-5613, E-mail: email@example.com; In Lima, Peru: Clara
Ugarte Perrin, Phone: +51-1-611-2521, E-mail: firstname.lastname@example.org