YEREVAN, MAY 25, NOYAN TAPAN. Iberian Resources company (Australia) has already made its first production - 12 kg of gold, which was mined in Terterasar mine in Syunik marz. Manvel Bagratian, director of the company's Armenian subsidiary, told reporters on May 25 that the confirmed gold resources at Terterasar and Lichvaz-Tey mines make 3 and 17 tons respectively. The company has made investments of 15 million dollars so far. M. Bagratian said that Iberian Resources intends to build a gold processing plant in Meghri. About 50 million dollars will be spent on construction work. It is envisaged to put the plant into operation in 2009. The daily production of the plant will amount to 10 kg of gold. According to M. Bagratian, demand for gold is great in the Armenian market but under the current tax legislation it is not profitable to sell gold on the local market as in this case the company has to pay 20% VAT. In 2005, Iberian Resources and Global Gold Mining company (US) acquired shares of the Armenian company Sipan 1 that had a licence for exploring the above mentioned mines. Last year Iberian Resources became the 100% shareholder of Sipan 1.

---