Scandinavian Resources has acquired a 100% interest in the advanced Ekströmsberg iron project and Tjarrojakka iron copper project from Grängesberg Iron AB located 45 kilometres from the Kiruna Iron District in northern Sweden.
The beauty of the deal is that when combined with Scandinavian Resource's subsidiary, Kiruna Iron AB's existing JORC resources it provides a platform for Scandinavian to mine iron from regional deposits and transporting the magnetite concentrate to Port Narvik.
The acquisition includes nine iron permits which contain a total exploration target of 244 million tonnes to 271 million tonnes iron, grading in a range of 32% to 52% iron.
Mr Olof Forslund technical director of Scandinavian said “Ekströmsberg and Tjarrojakka are key iron projects because they add additional tonnage to the portfolio and adjoin our existing iron projects which are located close to modern infrastructure at Kiruna.”
The company expects to update the combined JORC Inferred Mineral Resource with an exploration target in July this year after the completion of Phase I drilling comprising 10,000 metres, assaying and modeling.
Scandinavian acquired the nine permits through its wholly owned subsidiary Kiruna Iron AB and moves Kiruna a step closer to becoming a producer of magnetite concentrate. The acquisition is consistent with Kiruna long term strategy of mining iron from a number of 50 million tonne to 100 million tonne iron deposits within the world class Kiruna iron district and transporting a premium quality magnetite concentrate to the Port of Narvik.
The consideration comprises the issue of 8.2 million ordinary shares in Scandinavian, a USD 2 million payment and a 1% NSR on future production. The cash component to be funded from existing cash reserves and existing facilities is payable in three tranches: USD 500,000 within 14 days, USD 750,000 by 15 August 2011 and USD 750,000 by 15 November 2011.
The beauty of the deal is that when combined with Scandinavian Resource's subsidiary, Kiruna Iron AB's existing JORC resources it provides a platform for Scandinavian to mine iron from regional deposits and transporting the magnetite concentrate to Port Narvik.
The acquisition includes nine iron permits which contain a total exploration target of 244 million tonnes to 271 million tonnes iron, grading in a range of 32% to 52% iron.
Mr Olof Forslund technical director of Scandinavian said “Ekströmsberg and Tjarrojakka are key iron projects because they add additional tonnage to the portfolio and adjoin our existing iron projects which are located close to modern infrastructure at Kiruna.”
The company expects to update the combined JORC Inferred Mineral Resource with an exploration target in July this year after the completion of Phase I drilling comprising 10,000 metres, assaying and modeling.
Scandinavian acquired the nine permits through its wholly owned subsidiary Kiruna Iron AB and moves Kiruna a step closer to becoming a producer of magnetite concentrate. The acquisition is consistent with Kiruna long term strategy of mining iron from a number of 50 million tonne to 100 million tonne iron deposits within the world class Kiruna iron district and transporting a premium quality magnetite concentrate to the Port of Narvik.
The consideration comprises the issue of 8.2 million ordinary shares in Scandinavian, a USD 2 million payment and a 1% NSR on future production. The cash component to be funded from existing cash reserves and existing facilities is payable in three tranches: USD 500,000 within 14 days, USD 750,000 by 15 August 2011 and USD 750,000 by 15 November 2011.
(sourced from ProActiveInvestors)
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