Chile Inversiones de Minerales (CIM), a subsidiary of Iron Mining Group (IMG), has acquired 70% of the La Serena Reserve property, believed to contain iron ore worth more than $11.2bn in Coquimbo, Chile.
Upon completion of the transaction, CIM is expected to deliver up to 200,000t of iron ore a month and mining is set to continue in the area over the next 15-20 years.
According to studies completed by the University of Chile, the property holds two iron ore deposits: five million tons of recoverable high-grade iron ore located on the beach and around 75 million tons or iron ore located on the ocean floor.
A marine concession will grant the company the right to begin mining iron ore along the shoreline pending final environmental approval.
The company has signed a letter of intent, which outlines the acquisition and states that CIM will assume control of two port development concessions, allowing the construction of ports adjacent to the property.
IMG CEO Garrett Krause said: "The acquisition of the La Serena Beach reserve positions Iron Mining Group to begin 2011 producing iron ore from mines in three different regions of Chile. In this way, we will be able to take advantage of three mid-sized regional ports, thereby maximising our monthly export capacity and as a result, earnings potential."