Anaconda Mining Inc announced that it has entered into an agreement to acquire interests in 2 significant iron exploration portfolios from a private Chilean company, Inversiones SBX Limitada. The exploration properties are located in north central Chile within the Chile Peru iron ore belt.

Under the terms of the Agreement, Anaconda will acquire the following interests:

1. A 50% interest in iron exploration concessions located in the immediate area of Anaconda’s San Gabriel Iron Project located near the coastal deep water port of Chañaral. The acquired exploration concessions include the Vetarron magnetite deposit and the Antonio property concessions, totalling 4,300 hectares.

In return for the acquisition of the Vetarron and Antonio concessions, SBX will acquire from Anaconda 50% interest in Anaconda’s San Gabriel property. SBX will fund the remaining USD 2.2 million in payments related to the San Gabriel option. The combined San Gabriel area assets will be held by a new company, Minera Hierro San Gabriel SA which will be owned on 50:50 basis by Anaconda and SBX.

2. A 20% interest in Inversiones Hierro Antofagasta SA, a private Chilean company which owns an 82.5% interest in Minera Hierro Antofagasta SA. MHA is a private Chilean company that holds the rights to four main project areas encompassing over 30,000 hectares of exploration concession, 35 kilometres to 60 kilometres east of the port city of Taltal.

Compañia Minera Del Pacifico SA, a 75% owned subsidiary of CAP SA presently has 17.5% ownership stake in MHA and CMP may increase its interest in MHA to 37.5% by making staged exploration and property payments totalling USD 15.0 million over the next 30 months.

Mr Lew Lawrick president and CEO of Anaconda said that “With this strategic transaction, we have established a strong local partner in SBX to assist in advancing San Gabriel to the development phase. Anaconda will immediately benefit from SBX’s exploration expertise, their commitment to fund the remaining option costs and the contribution of the additional property concessions in the vicinity of the San Gabriel deposit which have the potential to add to the total iron resource. Further, our investment in IHA gives Anaconda’s shareholders the opportunity to participate in what has the potential to become a world class iron district. This opportunity is readily enhanced by CMP’s participation and significant funding commitment.”