Toronto, Ontario-based Canadian iron ore producer Adriana Resources Inc. has announced that it has entered into a joint venture agreement with Wuhan Steel International Resources Development and Investment Co., a Canada-based subsidiary of major Chinese steel producer Wuhan Iron and Steel Co. (WISCO) for the development and operation of the Adriana Resources' Lac Otelnuk and December Lake iron ore properties located in Nunavik, Québec.
According to the agreement, WISCO, which currently owns approximately 19.8 percent of Adriana, will pay C$51,633,611 to Adriana and C$40 million will be injected into a joint venture company. On the other hand, Adriana will transfer its interest in the Lac Otelnuk project into the JV company in which WISCO will acquire a 60 percent interest while Adriana will hold the remaining 40 percent.
The transactions in the agreement are subject to government approvals in Canada and China, and regulatory approvals including final approval from the TSX Venture Exchange and approval from Adriana shareholders.