The Iron Bear project in Newfoundland Labrador is located near Rio Tinto’s IOC operations. (Image: Cyclone Metals)
Cyclone Metals Ltd (ASX: CLE) has signed a $138 million agreement with Vale (NYSE: VALE) for the joint development of the Iron Bear iron ore project in Canada.
Under the agreement, Vale will provide funding for the project in two phases, earning a 75% interest in Iron Bear. If the Brazilian miner proceeds with a decision to mine, it will have the option to acquire the remaining 25% at fair market value or carry Cyclone through to production without dilution.
According to Cyclone, the first phase will see $18 million allocated to a preliminary feasibility study, mineral resource drilling, and environmental baseline studies. In the second phase, Cyclone and Vale will form a joint venture to advance through a bankable feasibility study, conduct environmental impact studies, establish Impact…
