Canada-based Evrim Resources Corp. announced Thursday it has signed a five-year agreement with ArcelorMittal for iron ore exploration in
Mexico.
Under the terms of the agreement, Evrim and ArcelorMittal's Mexican unit ArcelorMittal Servicios Minerometalurgicos de Occidente S.A. will jointly fund the exploration, and in the event of the discovery of a deposit, ArcelorMittal will be solely responsible for funding the mine's development. ArcelorMittal will own 100% of all projects taken to the development stage, subject to a sliding scale royalty on iron ore production and a separate royalty on all other commodities payable to Evrim.
ArcelorMittal, which already has iron ore mines in
Canada, Liberia, Ukraine and Kazakhstan, aims to produce 84 million metric tons of iron ore annually by 2015, up from 15.4 million tons in 2013.