Minera IRL and Rio Tinto Restructure Ollachea Final Payment Terms

Minera IRL and Rio Tinto Restructure Ollachea Final Payment Terms 
LIMA, PERU -- (Marketwired) -- 09/13/13 -- Minera IRL Limited
("Minera IRL" or the "Company") (TSX:IRL) (AIM:MIRL) (BVLAC:MIRL),
the Latin American gold mining company, is pleased to announce that
it has entered into an agreement with Rio Tinto Mining and
Exploration Limited ("Rio Tinto") to defer the payment dates for the
final amount due to Rio Tinto on the Company's Ollachea Gold Project
in Peru. All amounts are in United States dollars, unless otherwise
stated. 
Under the revised agreement, the principal amount owing to Rio Tinto
of $21.5 million will be repaid in two instalments. The first
instalment, representing 34% of the total amount due ($7.3 million),
and originally due 11 October 2013, is now payable by 11 January 2014
(the "First Instalment"). The second and third instalments have been
combined into one final instalment, representing the remaining 66% of
the total amount ($14.2 million), which is due 1 July 2016 (the
"Final Instalment"). Originally, the second and third instalments of
$7.1 million each were due in July 2014 and July 2015, respectively.
Additionally, at Minera IRL's election, up to 80% of the principal
amount may still be settled in ordinary shares of Minera IRL. The
Company also has the right to settle up to 100% of the amounts
outstanding to Rio Tinto in cash, at any time. 
Commenting on the amended payment schedule, Courtney Chamberlain,
Minera IRL's Executive Chairman, stated, "We are very pleased to have
been able to restructure the payment schedule with Rio Tinto. The
First Instalment, originally due in October of this year, has been
deferred until January 2014. The deferral of the First Instalment
provides the Company with additional financial flexibility over the
near-term." 
"Furthermore, the payment of the remaining 66% of the principal
amount has been deferred until July 2016, which significantly
improves our working capital position. The deferred payment terms
also creates an opportunity for Minera IRL to potentially pay the
outstanding amount out of cash flow from the Ollachea Mine, which we
plan to bring into production in 2015." 
Minera IRL acquired the Ollachea Gold Project from Rio Tinto in 2006.
In 2007, the Company entered into an agreement with Rio Tinto for the
transfer of the Ollachea Mining Claims, which included provisions for
payments based upon achieving certain milestones, including the
delivery of a positive Feasibility Study. In the third quarter of
2013, it was agreed that Minera IRL would pay a final amount of $21.5
million to Rio Tinto based upon the results of the November 2012
Feasibility Study for the Ollachea Gold Project. There are no other
outstanding payments due to Rio Tinto, or any other party, for the
Ollachea Gold Project. The amount owing to Rio Tinto continues to be
secured against the Ollachea mining tenements. 
Both instalments accrue interest at a rate of 7% per annum to be paid
in cash. The First Instalment interest payment is due on 11 January
2014 and the Final Instalment interest payments are due on the first
day of July in 2014, 2015 and 2016. 
For purposes of calculating the number of shares to be issued, it
will be the lower of C$0.242, representing the 5-day
volume-weighted-average price ("VWAP") on the Toronto Stock Exchange
("TSX") on date of signing the revised agreement, or the TSX's 5-day
VWAP on the day on which an instalment is paid. The exchange rate
between the United States and Canadian dollars is based on the
average prevailing exchange rate during the 5-day VWAP period as
posted by the Bank of Canada. 
Additionally, should Rio Tinto not sell any ordinary shares that it
receives as consideration for the First Instalment for a period of
one year, Rio Tinto shall be entitled to a cash Share Hold Incentive
Payment. The Share Hold Incentive Payment, which is subject to
certain qualifying exceptions, will be equal to 10% of the market
value of any ordinary shares provided as part of the payment of the
first instalment. 
Minera IRL Limited is the AIM traded, TSX and BVL listed holding
company of precious metals mining and exploration companies focused
in Latin America. Minera IRL is led by an experienced senior
management team with extensive industry experience, particularly
operating in South America. The Group operates the Corihuarmi Gold
Mine and the advanced gold projects Ollachea in Peru and Don Nicolas
in Argentina. For more information, please visit www.minera-irl.com. 
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release. 
Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the
Company's future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent
risks and uncertainties.  
While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current
judgment regarding the direction of our business, actual results will
almost always vary, sometimes materially, from any estimates,
predictions, projections, assumptions or other future performance
suggestions herein. Except as required by applicable law or
regulation, Minera IRL Limited does not intend to update any
forward-looking statements to conform these statements to actual
results.
Contacts:
Minera IRL
Trish Kent
Vice President, Corporate Relations
+511 418 1230 
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Andrew Chubb
Neil Elliot
+ 44 (0)20 7523 8000 
finnCap (Co-broker, London)
Geoff Nash (Corporate Finance)
Matthew Robinson (Corporate Finance)
Elizabeth Johnson (Corporate Broking)
+ 44 (0)20 7600 1658 
RBC Europe Ltd (Co-broker, London)
Stephen Foss
Martin Eales
+44 (0)20 7653 4000 
Buchanan (Financial PR, London)
Bobby Morse
Gordon Poole
Louise Mason
+44 (0)20 7466 5000
 
 
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