Monday, 21 Feb 2011
China Daily reported that Wuhan Iron & Steel Group has agreed to invest CAD 56 million in a Canadian mining company Century Iron Mines Corp to acquire a stake and jointly develop iron ore projects.
Ms Sandy CK Chim CEO of CIMC said Wuhan Steel will have a 25% stake in the company after it lists in a month.
She said that CIMC also have plans to raise between CAD 300 and CAD 500 million through an additional public float.
CIMC, formerly known as Century Iron Ore Holdings Inc has three iron ore projects in Quebec. Ms Sandy said "We have explored reserves of 1 billion tonnes of magnetite iron ore, with ore content of 25% to 26%."
The agreement came two days after Wuhan Steel signed a formal deal with Canada listed Adriana Resource Inc for a stake in the Lac Otelnuk iron ore project in Quebec. As per report, the Lac Otelunk ore project has more than 6 billion tonnes of ore reserves with 29% ore content available for exploitation.
Wuhan Steel has been on the frontlines in investing in several iron ore assets overseas in order to cut its reliance on expensive imports. In July 2010, Wuhan paid USD 240 million to acquire 19.9% stake in Canadian Ore Company called CLM.
(Sourced from China Daily)
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