NML and Tata Steel to develop Taconite Project in Canada

Canadian mining company New Millennium Capital Corp. (NML) has announced that it has signed a binding heads of agreement with India's Tata Steel Global Minerals Holdings Pte Ltd (Tata Steel) to develop the LabMag and KéMag iron ore deposits, known collectively as the Taconite Project in Canada, describing it as one of the world's largest undeveloped magnetic iron ore deposits.
 
Tata Steel and NML will fund 64 percent and 36 percent respectively of the cost of the feasibility study of the project, which is estimated at CAD$50 million ($51.1 million).
 
Upon the successful completion of the feasibility study, Tata Steel and NML would enter into a binding joint venture agreement to develop one or both of the deposits, where Tata Steel and NML would hold shares in the ratio of 80 percent and 20 percent respectively. Within 60 days of Tata Steel's positive investment decision, NML would also have an option to acquire up to an additional 16 percent paid equity.
 
Tata Steel will arrange the required equity portion of the financing based on a maximum capital expenditure of up to CAD$4.85 billion ($4.99 billion) if both deposits are developed and up to CAD$4.68 billion ($4.82 billion) and up to CAD$3.76 billion ($3.87 billion) respectively, only if the KéMag or LabMag deposits are developed.
 
Together the LabMag and KéMag iron ore deposits hold over 9 billion mt of reserves and resources that will potentially produce 22 million mt per year of concentrate, with a potential mine life of over 100 years.