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 a
n
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 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.
About IFC
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.
