According to Canadian mining company Adriana Resources Inc., it has signed a binding framework agreement with Wuhan Steel International Resources Development and Investment Co., Ltd, a Canada-based subsidiary of major Chinese steel producer Wuhan Iron and Steel Co. (WISCO). Accordingly, Adriana Resources and WISCO are to jointly develop the Lac Otelnuk iron ore mine in Quebec, Canada.
As per the agreement, WISCO will own a 60 percent stake in the project for the development of the Lac Otelnuk iron ore mine at a cost of RMB 120 million and will also receive 19.9 percent of total shares of Adriana Resources through the issuance of new shares by the Canadian company.
The Lac Otelnuk mine has reserves of 6 billion mt of magnetite iron ore concentrate with 30 percent iron content.
Adriana Resources owns iron ore assets in both Brazil and Canada.