Vancouver, British Columbia-based Ridgemont Iron Ore Corp. announced Wednesday that it has entered into a Letter of Intent to acquire all of the issued and outstanding common shares of IronOne Inc., which has an interest in two iron projects located in Labrador and Nunavut. Under the terms of the Letter of Intent, Ridgemont will acquire all of the outstanding shares of IronOne in exchange for C$11,970,000, payable in common shares of Ridgemont based on a price of $0.40 per Ridgemont share.
"Ridgemont's ability to leverage all the in-house expertise of Forbes West, already on-site in Labrador as they finalize exploration drilling for Alderon Iron Ore Corp., should allow us to rapidly advance these new properties," said Brian Penney, President and CEO of Ridgemont.
The assets of IronOne include the Lac Virot Iron Project located in Labrador and the Maguse River Iron Project located in Nunavut. IronOne has an option to earn a 100 percent interest in the Lac Virot Iron Project, subject to a 2 percent net smelter return royalty. The Lac Virot Iron Project is comprised of approximately 114 square kilometers (70.8 square miles) of map staked mineral licenses located in the southern Labrador Trough, Canada's foremost iron ore mining region. Four major mines (Mont-Wright, Carol, Scully and Lac Bloom) are located within 20 kilometers (12.4 miles) of the project. Additionally, IronOne has applied for permits to hold a 100 percent interest in the Maguse River Iron Project located in southern Nunavut, which covers a nearly 200-kilometer (124.3-mile) strike length of folded, magnetite-rich, metasedimentary rocks of the Archean-aged Rankin-Ennadai Greenstone Belt.