2013-08-23 00:49:01 -
Vancouver, British Columbia, August 22, 2013 - Investment firm Jennings Capital
has updated coverage on Minera IRL (TSX:IRL) (AIM:MIRL). Following news that the
company had arranged an $80 million financing package, analyst Kwong-Mun Achong
Low reiterated his speculative buy rating and 12 month target of $0.75, a
premium of 206% to the $0.245 price the day the report was issued.
InvestmentPitch.com has produced a "video news alert" based on this report. If
this link is not enabled, please visit www.InvestmentPitch.com and enter
"Minera" in the search box.
Minera IRL together with its subsidiaries is a Latin American precious metals
mining, development and exploration company. In Peru, the Group operates the
Corihuarmi Gold Mine, and is in feasibility stage at its Ollachea project. In
Argentina, the Group has completed a feasibility study
at the Don Nicolas gold
The financing, a combination of debt and equity, was arranged with "CIMINAS", a
consortium of Argentina-based industrial companies seeking exposure to mining,
will fund development of the Don Nicolas project.
Minera will retain 51% ownership, and operating control, of Don Nicolas, and
Jennings Capital estimates that the $80 million is sufficient to carry the
project to production.
Courtney Chamberlain, Executive Chairman of Minera commented, "We are delighted
to have financing in place to develop the Don Nicolas Project. Our resource
base, experience and highly prospective land position, augers well for a solid
and enduring mining venture."
The research report anticipates construction starting in early 2014, with gold
production commencing in early 2015.
Jennings Capital stated, "We like this deal because it offers Minera an
effective free carried interest to production at Don Nicholas, as well as
secured gold production as Corihuarmi production comes to an end due to ore
depletion. Also, this financing offers no recourse to the parent company, and
separates the Argentine and Peruvian operations."
Minera currently trades at $0.25, well below the $0.75 target price, and with
182.8 million shares outstanding, the company is capitalized at $45.8 million.
For more information please visit the company's website www.minera-IRL.com, call
Trish Kent, Vice President Corporate Communications at 511-418-1230 or email
For more information about Jennings Capital or to obtain a copy of their
research report, contact your nearest Jennings Capital office. Their branches
are listed on their website at www.jenningscapital.com.
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Barry Morgan, CFO
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