Washington, DC/ Lima, Peru, June 25,
2009—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 programs.”
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
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.