Cyclone Metals Ltd (ASX:CLE) has completed the acquisition of Block 103 Magnetite Iron Ore Project, a large and high-quality magnetite iron ore resource in the Labrador Trough, Canada.
All the condition precedents of the binding Heads of Agreement have been satisfied, with the acquisition of Labrador Iron Pty Ltd (which owns 100% of Block 103) settled through 2.16 billion newly issued shares in Cyclone.
Block 103 is one of the most competitive magnetite iron ore resources in the world, uniquely positioned to supply the steel industry which desperately needs a large and low-cost supply of magnetite concentrates and pellets to reduce its carbon footprint.
The project also benefits from its proximity to an existing multi-user iron ore rail network connecting to deep water access, along with access to hydropower.
Block 103 location map.
Cyclone executive chairman Tony Sage said: “We are pleased to announce that Cyclone has successfully completed the acquisition of the world-class Block 103 iron ore project with an all-script transaction.
“This very large and high-quality magnetite iron ore resource is located in the Labrador Trough in Canada, which is an established mining jurisdiction which includes producers such as IOC (Rio Tinto (ASX:RIO)), Champion Iron and Tata Steel.
“The project benefits from access to heavy haul rail and hydropower and is ideally positioned to meet the growing demand for high-quality magnetite concentrates and pellets.”
New CEO
Cyclone announced earlier this month the appointment of Paul Berend as CEO and executive director to immediately start driving the active development of Block 103.
Read: Cyclone Metals appoints experienced MD to drive key iron ore project
The work will initially focus on defining a maiden JORC 2012 compliant resource, completing metallurgical and pelletising test-work, updating the existing economic feasibility studies, building a trial pilot plant and completing environmental mitigation studies.
Berend said: “Over US$35 million has been spent on Block 103, and all the studies and modelling done to date suggest that we could be looking at a world-class iron ore asset with a clear pathway to production.
“I am very excited by the opportunity to develop one of the most competitive magnetite iron ore resources in the world; at a time when the steel industry desperately needs a large and low-cost supply of magnetite concentrates and pellets to reduce its carbon footprint.
“The board and executives of Cyclone are committed to operate safely and sustainably, and to work closely with the local communities to maximise the benefits for the local economy, whilst creating long-term value for our shareholders.”
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