IVERNIA ANNOUNCES ESPERANCE CONTRIBUTION AGREEMENT
Toronto - December 23, 2008 - Ivernia Inc. (TSX: IVW) (the “Company”) is pleased to
announce that together with its wholly owned subsidiary, Magellan Metals Pty Ltd (“Magellan”)
it has agreed with the State of Western Australia (the “State”) and the Esperance Port Authority
(“EsPA”) a suitable financial contribution toward the resolution of outstanding lead issues at
Esperance.
The agreement, dated December 23, 2008 (the “Esperance Agreement”), provides for a
financial contribution by Magellan of A$9 million toward comprehensive clean-up activities at
the Port and within the town. The agreement has been formally approved and signed by the
State, EsPA, Magellan and Ivernia and mutually releases the parties from claims against each
other in respect of lead pollution in and around the port and town of Esperance.
The clean-up activities to be undertaken by the State and EsPA include testing rainwater tanks
and ceiling voids, and clean up where lead is present; plus demolition and disposal of the
existing lead shed and clean-up within the Port and surrounding area.
The State and EsPA will carry out the clean up under relevant laws and regulations and
requirements and use their best efforts to complete the clean up by December 31, 2010.
Magellan’s contribution comprises three equal payments of A$3 million on December 31, 2009,
December 31, 2010 and June 30, 2011 subject to Magellan achieving set cumulative earnings
targets beginning January 1, 2009. The earnings targets are A$6 million, A$12 million and
A$18 million respectively by the three repayment dates. In the event that such earnings targets
before interest, taxation, depreciation, amortization and unrealized foreign exchange gains and
losses have not been met by the respective due dates then the payment dates will be extended
until such targets are met.
If A$6 million of the total contribution is not paid by Magellan by June 30, 2012 the Esperance
Agreement will be of no effect and the parties shall have the rights and remedies to claims as
existed prior to the agreement being signed.
The State or EsPA have retained the right to seek to claim from Magellan a future contribution
to seabed remediation in the harbour adjacent to the port area to remove lead carbonate
should this work be required in the future. Magellan’s maximum exposure to such a claim is
A$3 million, however the Company may defend such a claim as it sees fit.
Alan De’ath, Ivernia President and Chief Executive Officer said, “Ivernia, Magellan, the State
Government and the EsPA believe that the agreement reached today is an appropriate
contribution toward clean-up activities at Esperance and will allow everyone involved in the
issue to move forward by addressing the community’s outstanding concerns about Magellan
lead at the Port and within the town.”
As previously announced on December 3, 2008, State Government approval has been granted
for Magellan to export its remaining stockpile at Esperance as an essential first step toward a
final clean-up of the Port and town of Esperance. Magellan is required to export the lead
carbonate by April 30, 2009 and is well advanced on finalizing the container and shipping
logistics and will be moving the bagging machine to Esperance to commence bagging
operations in January.
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Separately, Magellan also announced today an A$1 million fund for community-based projects
in Esperance over the next three years. This fund, to be administered by the Shire of
Esperance, is not part of the agreement with the State and will be jointly dispersed by Magellan
and the Shire. Detailed information on the Magellan Community Fund and its operation can be
found in the Company’s media statement at www.magellanmetals.com.au
About Ivernia
Ivernia is an international base metals operating, development and exploration company. The
Company is the sole owner and operator of the Magellan lead mine in Western Australia. When
operations resume and target production levels are achieved the mine is expected to be a
significant pure lead producer accounting for approximately 2% of the total world lead mine
production.
Ivernia trades under the symbol “IVW” on the Toronto Stock Exchange.
Forward-Looking
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