Vancouver-based mining exploration company Blackstone Ventures Inc. announced Tuesday that Blackstone and Thomas Mining Development Ltd. (TMD) have signed a Letter of Intent (LOI) whereby TMD can earn up to a 75 percent interest in Blackstone's Norbotten iron-oxide-copper-gold project located in northern Sweden.
Under the terms of the agreement TMD can earn a 55 percent interest in the project by completing $5 million in expenditures within four years of signing a definitive agreement. Upon completion of these expenditures a joint venture would be formed between TMD and Blackstone. TMD will have the option to increase its interest in the project to 65 percent by sole funding the cost of pre-feasibility study. TMD will have an additional option to increase its interest to 75 percent by sole funding the cost of a bankable feasibility study. TMD is a private company which identifies and explores for high quality exploration projects worldwide for Cliffs Natural Resources.
Additionally, Blackstone also reported that it has entered into an agreement with Cleveland, Ohio-based Cliffs Natural Resources Inc., the largest producer of iron ore pellets in North America, for a private placement of up to 11,916,666 common shares at a price of six cents per share for total gross proceeds of up to approximately $715,000. Upon closing of the private placement Cliffs will own 9.9 percent of the issued and outstanding shares in Blackstone.