Monday, 07 Mar 2011
New Millennium Capital Corp announced that it has signed a binding heads of agreement with TATA Steel Global Minerals Holdings Pte Ltd to develop the LabMag and KeMag iron ore deposits, known collectively as the Taconite Project. The remainder of the Millennium Iron Range will be retained by NML.
Under the Binding HOA, TATA Steel shall participate in the development of a feasibility study of the Taconite Project and contribute towards 64% of the costs related thereto. The parties would enter into a binding joint venture agreement upon the successful completion of the Feasibility Study and TATA Steel electing to develop one or both of the deposits.
After formation of the joint venture, NML is expected to hold a 36% equity interest in the Taconite Project, including a 20% free carry equity interest. In addition, NML will have a 4% right of first refusal on future equity sales by TATA Steel to increase its equity interest to a maximum of 40%.
TATA Steel will arrange the required equity portion of the financing (excluding NML's optional equity interest) based on a maximum capital expenditure of up to CAD 4.85 billion if both deposits are developed and up to CAD 4.68 billion and up to CAD 3.76 billion respectively, if only the KeMag or LabMag deposits are developed.
Arranging debt financing for the project shall be the responsibility of TATA Steel.
Mr Robert A Martin president & CEO said “With the agreement we are announcing today, the Taconite Project becomes a company builder for New Millennium. The binding heads of agreement with TATA Steel provides the framework to take the project through to development and ultimately to the production stage. This project has the potential to create substantial wealth for our shareholders and for Canadians. It will generate long-term jobs, taxes and infrastructure for the First Nations and other surrounding communities.”
The Taconite Project consists of two world-class magnetite iron ore deposits on the emerging Millennium Iron Range, which stretches 210 kilometres from western Labrador through eastern Quebec. The LabMag deposit is located in the Labrador portion of the range and the KeMag deposit is located in the Quebec portion. Together, the two deposits hold over 9 billion tonnes of reserves and resources that will potentially produce 22 million tonnes per year of concentrate, with a potential mine life of over 100 years.
Tags : Millennium Iron Range, steel mills, iron ore deposits
Under the Binding HOA, TATA Steel shall participate in the development of a feasibility study of the Taconite Project and contribute towards 64% of the costs related thereto. The parties would enter into a binding joint venture agreement upon the successful completion of the Feasibility Study and TATA Steel electing to develop one or both of the deposits.
After formation of the joint venture, NML is expected to hold a 36% equity interest in the Taconite Project, including a 20% free carry equity interest. In addition, NML will have a 4% right of first refusal on future equity sales by TATA Steel to increase its equity interest to a maximum of 40%.
TATA Steel will arrange the required equity portion of the financing (excluding NML's optional equity interest) based on a maximum capital expenditure of up to CAD 4.85 billion if both deposits are developed and up to CAD 4.68 billion and up to CAD 3.76 billion respectively, if only the KeMag or LabMag deposits are developed.
Arranging debt financing for the project shall be the responsibility of TATA Steel.
Mr Robert A Martin president & CEO said “With the agreement we are announcing today, the Taconite Project becomes a company builder for New Millennium. The binding heads of agreement with TATA Steel provides the framework to take the project through to development and ultimately to the production stage. This project has the potential to create substantial wealth for our shareholders and for Canadians. It will generate long-term jobs, taxes and infrastructure for the First Nations and other surrounding communities.”
The Taconite Project consists of two world-class magnetite iron ore deposits on the emerging Millennium Iron Range, which stretches 210 kilometres from western Labrador through eastern Quebec. The LabMag deposit is located in the Labrador portion of the range and the KeMag deposit is located in the Quebec portion. Together, the two deposits hold over 9 billion tonnes of reserves and resources that will potentially produce 22 million tonnes per year of concentrate, with a potential mine life of over 100 years.
Tags : Millennium Iron Range, steel mills, iron ore deposits
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