Cyclone Metals has secured ownership of Australian firm Labrador Iron, which holds a 100% stake in the Block 103 Magnetite Iron Ore Project in the world-class Labrador Trough iron belt in Quebec, Canada.
Under the binding term sheet, Cyclone will issue a total of 2.16 billion Cyclone Metals shares, at $0.0025 apiece, to Labrador shareholders.
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In a press statement, Cyclone Metals said: “In addition to the above, prior to completion of the transaction, Cyclone also proposes to undertake a capital raising of no less than $1m, with the potential for oversubscriptions up to $2m at an issue price of $0.0025 per share.”
Covering an area of 7,275ha and located 30km north-west of the mining town of Schefferville, Block 103 accounts for 99% of Canada’s iron ore.
It is claimed to be the world’s largest undeveloped magnetite iron ore project holding a historical mineral resource of 7,200Mt @ 29.2% Fe, classified as Inferred in compliance with the provisions of the Canadian NI 43-101.
Cyclone Metals executive director Tony Sage said: “We are very pleased to announce the acquisition of such a high-potential magnetite iron ore project in close proximity to other major iron ore producers and developers in a world-class mining province and a Tier 1 jurisdiction of Newfoundland and Labrador, Canada.
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By GlobalData“The strategic geographical position of Block 103 with established infrastructure, services, and transport corridors, greatly supports the development potential of the asset.
“The presence of neighbouring mines run by Tier 1 producers, including Tata Steel, likewise, offers many future operational opportunities for Cyclone.”
