Anaconda Mining Inc. has struck a deal to acquire interests in two significant iron exploration portfolios from a private Chilean company, Inversiones SBX Limitada.

The Canadian company said Tuesday that the properties are located in north central Chile, within the Chile-Peru iron ore belt.

Anaconda said under the agreement it would acquire a 50 per cent interest in iron exploration concessions that total 4,300 hectares and are near its San Gabriel iron project.

In return, SBX will receive a 50 per cent interest in Anaconda's San Gabriel property, and fund US$2.2 million related to the option.

The combined San Gabriel assets would be held by a new company called Minera Hierro San Gabriel S.A and equally owned by both Anaconda and SBX.

Anaconda will also acquire and 20-per cent interest in privately owned Chilean company Inversiones Hierro Antofagasta S.A., which has an 82.5 per cent interest in Minera Hierro Antofagasta, owner of four project areas spanning 30,000 hectares of exploration concession east of the city of Taltal.

"With this strategic transaction, we have established a strong local partner in SBX to assist in advancing San Gabriel to the development phase," said Anaconda president and CEO Lew Lawrick in a release.

"Further, our investment in Inversiones Hierro Antofagasta gives Anaconda's shareholders the opportunity to participate in what has the potential to become a 'world class' iron district."

Anaconda shares moved ahead five cents to 32.5 cents on the Toronto Stock Exchange in trading Tuesday.

Sourced from www.winnipegfreepress.com