CHICAGO, IL -- (MARKET WIRE) -- 06/27/11 -- Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) is pleased to announce that the Company has expanded the Option granted for the start-up of the mine and mill operations at the Don Roman grouping located in the State of Sinaloa, Mexico. The enhanced option increases the spending requirements from $8 million to $13 million to earn an undivided fifty percent (50%) interest in an expanded list of concessions, including Tara's iron ore concessions.
Over the last few weeks, the senior management and technical team of Carnegie Mining and Exploration, Inc. (CME), formerly known as SD-CHRE, the Optionee, have been conducting their due diligence towards a Don Roman mine/mill/resource development work plan. After viewing the existing workings and understanding the potential scale, CME made a decision to be more aggressive with the development of the project, including the mill expansion. In addition, CME also visited the recently acquired iron ore project along with additional potential iron ore projects. They are confident that their operating experience and end-market iron ore relationships can benefit Tara shareholders through scale and design. Tara has agreed to extend the Letter of Intent (LOI) to include an option to acquire up to an undivided fifty percent (50%) interest in all iron ore projects.
Mr. Francis Biscan Jr., President of Tara Minerals Corp., commented, "Their accomplished geological and technical teams have been reviewing our Mexican projects. They recognize the significant revenue and resource potential of the holdings and have suggested an aggressive development time line. We look forward to working with them to extract revenue from our gold, silver, zinc, lead and iron ore projects."
On May 5, 2011, Tara announced that it has granted to Springbok Development, LLC ("SD") and Claridge Hanlon Resource Engineering ("CHRE"), a division of Hanlon Engineering & Architecture Inc., an option to acquire up to an undivided forty-nine percent (49%) interest in and to all of the mining concessions known as the Don Roman grouping. In the modified LOI, to earn an undivided thirty percent (30%) interest, SD-CHRE, now organized as CME, will incur a minimum of $2 million to start-up the existing mill and achieve a production rate of 120 tonnes per day within 120 days and incur another $6 million to achieve a production rate of 360 tonnes per day within 12 months. To increase its undivided interest to fifty percent (50%), CME will incur an additional minimum $5 million to achieve and maintain a minimum production rate, as the parties may agree upon within the Definitive Agreement, not to be less than 600 tonnes per day, within twenty-four months. In addition, CME will have a ninety day option to incur a minimum of $1 million, from the above investment targets, to earn an undivided fifty percent (50%) interest in Tara's current and future iron ore projects within Mexico. CME will be the operator for all projects and net revenue will be shared equally. The parties are working towards completing a Definitive Agreement.
About Tara Minerals Corp. (http://www.TaraMinerals.com)
Tara Minerals Corp. is advancing the development of its Don Roman mine and mill, located in Choix, Mexico and completing the Definitive Agreement with Yamana Gold Inc. that grants Yamana an option to acquire up to a 70% interest in the Picacho gold/silver project. Management is focused on 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.
Source: Tara Minerals Corp.