Jun. 28 - Tara Minerals Corporation announced that it has acquired 100% of the title to the Champinon iron ore property in Mexico for USD 2,175,000 plus any applicable Added Value Tax. The previous agreement with the vendor included a royalty of USD 5 per tonne of iron ore sold. Under the acquisition agreement, this royalty has been eliminated and should result in substantially improved operating margins. Owning Champinon 100% gives Tara's experienced team the opportunity to better manage future work programs and their costs.
Tara has forwarded payments totaling USD 350,000.01 plus Added Value Tax to date and will make further payments of USD 200,000 plus any applicable Added Value Tax on August 1st 2012, USD 208,333.33 plus any applicable Added Value Tax on September 7th 2012, USD 408,333.33 plus any applicable Added Value Tax on March 7th 2013, USD 408,333.33 plus any applicable Added Value Tax on September 7th 2013, USD 300,000 plus any applicable Added Value Tax on March 7th 2014 and USD 300,000 plus any applicable Added Value Tax on September 7th 2014.
Mr David Barefoot COO at Tara Minerals said that "Rio Tinto Group, the world's second largest exporter of iron ore, recently committed USD 4.2 billion to expand its Australian iron ore mines as Chinese demand for iron ore grows. In fact, China's demand is projected to grow by over 40% by 2030. We want to participate in this long term growth and thus want to own 100% of Champinon."
Mr Francis Biscan president of Tara Minerals said that "We want to build sustainable long-term value for our shareholders. Our team has proven that it can recognize value early and this track record has resulted in the profitable acquisition and sale of the gold/silver San Miguel property to Paramount Gold and Silver Corporation the gold, silver and copper Lluvia de Oro property to NWM Mining Corporation, and, most recently, the gold and silver Picacho property to Yamana Gold Inc for USD 35.6 million. Now we have the necessary human and financial resources to take our pipeline of projects to full valuation by owing them 100% through production decisions and implementation. We have to think strategically with Champinon and own it 100% before our on going work enhances its value."