Palladon Ventures owns a 19.3% stake in the largest iron mine in the Western United States. The mine, which is referred to as the Iron Mountain project, is scheduled to produce close to 2 million tonnes of iron ore in 2012 and potentially 4 million tonnes in 2013.
Up until a few weeks ago there was still some uncertainty regarding the project, but this uncertainty has almost entirely been removed.
The Iron Mountain project is based in Cedar City, Utah and is operated by CML Metals. The project has several iron ore deposits that have been historically drilled and proved by previous operators. At the moment, only one of these deposits is in NI 43-101 compliance, but CML is committed to drilling and proving these other deposits.
The key to the Iron Mountain project is a concentrate facility that is in the process of being built, and is scheduled for completion in late January of 2012. The concentrate facility will effectively take low grade ore of about 40%Fe and produce a significantly more valuable high grade ore called concentrate that will be around 67%Fe.
Up until a few weeks ago there was a small concern that CML may not be able to generate enough capital to complete the construction of the concentrate facility. The company had entered into a agreement with Credit Suisse to secure a two tranche USD 65 million dollar loan which would be used to build the facility. The first tranche of USD 20 million dollars was received this past January, and the second tranche of USD 25 million was to be given to CML only if it met certain requirements stipulated by the terms of the loan.
(sourced Seeking Alpha)