CHICAGO, IL — (Marketwire) — 06/26/12 — Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) is pleased to announce that it has acquired 100% of the title to the Champinon iron ore property in Mexico for $2,175,000 plus any applicable Added Value Tax. The previous agreement with the vendor included a royalty of $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 $350,000.01 plus Added Value Tax to date and will make further payments of $200,000 plus any applicable Added Value Tax on August 1, 2012, $208,333.33 plus any applicable Added Value Tax on September 7, 2012, $408,333.33 plus any applicable Added Value Tax on March 7, 2013, $408,333.33 plus any applicable Added Value Tax on September 7, 2013, $300,000 plus any applicable Added Value Tax on March 7, 2014, and $300,000 plus any applicable Added Value Tax on September 7, 2014.
David Barefoot, Chief Operating Officer at Tara Minerals, commented, “Rio Tinto Group, the world’s second-largest exporter of iron ore, recently committed $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.”
Tara is focused on advancing the 370 acres Champinon iron ore property towards calendar year 2012 production. The host structure has been estimated, through surface mapping and sampling, to be at least 40 m wide, 1.5 km in length and open in all directions. Surface grab samples, from the high-grade zone, returned assays ranging from 62.0% to 68.9% iron ore. Initial analysis indicates the potential for favorable operating margins and substantial growth in the available tonnage through systematic exploration guided by current knowledge of the structure. Work is ongoing to gather additional data and enhance the understanding of the structure.
Mr. Francis Biscan, Jr., President of Tara Minerals, commented, “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 Corp., the gold/silver/copper Lluvia de Oro property to NWM Mining Corporation, and, most recently, the gold/silver Picacho property to Yamana Gold Inc. for $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.”
About Tara Minerals Corp. (http://www.TaraMinerals.com)
Tara Minerals Corp. is focused on advancing its gold/silver/zinc/lead Don Roman mine and mill and its iron ore projects located in Mexico. Management is creating long-term shareholder value and deploying its capital to advance its projects by enhancing resources, further outlining new discoveries/targets, and acquiring additional strategic assets. Tara’s strength in recognizing value early and strategy of reducing risk through a foundation of cash flow, positions it for low-risk value creation.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company’s control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Please read the full disclaimer at www.TaraMinerals.com (http://taraminerals.com/English/General/Disclaimer/default.aspx). Contact: David Barefoot (888) 901-4550 Email Contact