Iron Mining Group, Inc.’s (IMG) wholly owned subsidiary, Chile Inversiones de Minerales, Ltda. has completed the initial acquisition of 50% of the La Serena Iron Sands Mine. This will increase to 70% once repayment of USD 1.04 million from pre-existing debts is received. Repayment will come via iron ore sales from the property. IMG has taken management control of the mine and two other port development projects in Chile’s Coquimbo region. The “iron sands” property extends 2km by 1 1/2km and includes a mineral exploitation concession and a pending marine concession. When operational, the marine concession will allow the mining of iron ore along the ocean floor up to 2km offshore. Combined, the concessions contain up to 66,500,000mt of recoverable high grade iron ore with a value of USD 9 billion. Once their environmental declaration has been approved IMG plans to produce 60,000mt per month to start, gradually increasing to 180,000mt per month by July 2011. Having acquired two port development projects IMG has committed to investing in port infrastructure allowing for significant growth in their total iron ore export capacity. The new ports will accommodate cape sized vessels with a combined loading capacity of 18,000,000mt.
