Unique Crypto Strategies
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

Unique Crypto Strategies

Investing

Cyclone Metals, Vale to Develop Iron Bear Project in US$138 Million Deal

by February 20, 2025
February 20, 2025
Cyclone Metals, Vale to Develop Iron Bear Project in US$138 Million Deal

Cyclone Metals (ASX:CLE) has signed a binding commercial agreementwith global iron ore leader Vale (NYSE:VALE) through which the parties will jointly develop the Iron Bear asset in Québec, Canada.

The partnership aims to leverage Vale’s extensive resources and expertise to advance Cyclone’s Iron Bear project.

Cyclone and Vale first announced a memorandum of understanding for Iron Bear in November 2024. It outlined key terms for the partnership, but was non-binding except for exclusivity and confidentiality clauses.

“Project Iron Bear has now secured a clear pathway to get into production, and to become a world leader for the supply of low cost and ultra-low carbon iron ore products,” Cyclone CEO Paul Berend said in Monday’s (February 17) release.

The company’s agreement with Vale outlines a collaborative framework with two phases. The arrangment will see Vale provide technical and financial support to expedite the development of Iron Bear.

Under the deal, Vale will contribute US$18 million for Phase 1 of a work program at Iron Bear. It will include a prefeasibility study, as well as mineral resource drilling and environmental baseline studies.

Vale can choose to trigger Phase 2 once Phase 1 is complete; completion will occur either when Cyclone receives Vale’s full Phase 1 contribution, or when the Phase 1 work program at Iron Bear has been ‘substantially completed.’

When Phase 2 begins, the companies will form a joint venture to develop Iron Bear, with Vale receiving a 30 percent equity interest in the entity. Vale will put as much as US$120 million toward the joint venture’s activities, which will include a bankable feasibility study, environmental impact studies and impact benefit agreements with First Nations.

Vale’s interest in the joint venture will rise to 75 percent when it has made its total contribution for Phase 2, or when it makes a decision to mine at Iron Bear. Vale will have the right to acquire the remaining 25 percent once the decision to mine has been made; if it does not do that, it will be able to set up non-dilutionary production CAPEX funding for Cyclone.

Located near the border between Québec and Newfoundland and Labrador, Iron Bear is positioned less than 25 kilometres from an open-access heavy haul railway, allowing transportation to export markets. It has a resource of 16.6 billion tonnes at 29.3 percent iron, positioning it as a potential key player in the global iron ore supply chain.

Mitsui joins Rhodes Ridge iron ore joint venture

In another sign of increasing interest in getting new iron ore projects off the ground, Mitsui & Co. (TSE:8031) has agreed to acquire a 40 percent stake in Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO) Rhodes Ridge joint venture.

The Japanese conglomerate will pay US$3.34 billion to buy VOC Group’s 25 percent stake in the joint venture, plus another US$2 billion to purchase a 15 percent interest in the joint venture from AMB Holdings.

According to Mitsui, Rhodes Ridge is one of the largest undeveloped iron ore deposits in the world, with a resource of 6.8 billion tonnes. It is located in Western Australia’s Pilbara region, and first ore is expected in 2030. Mitsui’s annual share of output is expected to be 16 million tonnes initially, expanding to 40 million tonnes down the line.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Trump Media sues Brazil Supreme Court judge who battled Elon Musk
next post
Israeli hostage families forum receives ‘heart-shattering’ news of Bibas deaths

You may also like

Group Eleven Announces Upsize of Private Placement to...

Silver47 Announces Trading on the TSX-Vand Provides Project...

Will Trump Bring Back the Gold Standard?

Silver Price Update: Q3 2024 in Review

StrategX Discovers High-Grade Copper at East Arm, Great...

New Resource Booking

Result of AGM, Share Consolidation and TVR

Lobo Tiggre: Gold’s Bullish New Paradigm, Copper Timing...

Canadian Investment Regulatory Organization Trade Resumption – NF

Sarama Resources Completes Acquisition of Majority Interest in...

Group Eleven Announces Upsize of Private Placement to...

Silver47 Announces Trading on the TSX-Vand Provides Project...

Will Trump Bring Back the Gold Standard?

Silver Price Update: Q3 2024 in Review

StrategX Discovers High-Grade Copper at East Arm, Great...

New Resource Booking

Result of AGM, Share Consolidation and TVR

Lobo Tiggre: Gold’s Bullish New Paradigm, Copper Timing...

Canadian Investment Regulatory Organization Trade Resumption – NF

Sarama Resources Completes Acquisition of Majority Interest in...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • White House highlights over $2B in savings from DEI cuts during Trump...

    • GOP talk on millionaire tax hike ‘makes no sense,’ Trump White House alum says

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

    • Trump considers tax hike on Americans making $2.5 million or more per year

    • GOP senators: Congress should vote on Trump’s potential Iran nuclear deal

    Categories

    • Business (439)
    • Investing (2,063)
    • Politics (3,417)
    • Uncategorized (1)
    • World (2,179)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: uniquecryptostrategies.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 uniquecryptostrategies.com | All Rights Reserved


    Back To Top