New Millennium Iron Corp. Announces Tata Steel Minerals Canada's Positive
Agreements with Labrador Iron Mine Holdings Limited for Its
Direct Shipping Ore Project
CALGARY, ALBERTA -- (Marketwire) -- 03/12/13 --
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE
New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML)
announced today that Tata Steel Minerals Canada ("TSMC"), in which
NML has a 20% interest, has entered into a multi-faceted framework
agreement with Labrador Iron Mines Holdings Limited ("LIM") that
favourably impacts the Direct Shipping Ore ("DSO") Project owned and
operated by TSMC. The agreement involves cooperation in transport and
port infrastructure development as well as transactions for
development of LIM's Howse deposit and TSMC's Timmins 4 deposit. Both
companies will enjoy the benefit of cost synergies from the
rationalization of various aspects of their respective iron ore
operations. The companies intend to enter into definitive agreements
to formalize this agreement in due course.
Dean Journeaux, President and CEO of NML, said, "The framework
agreement provides operating efficiencies for both companies,
resulting in a 'win-win' outcome. By co-operating together, both
companies stand to achieve substantial savings through economies of
scale. For TSMC, acquisition of 51% and possibly 70% of the Howse
deposit will result in a net addition of resources located only about
four kilometers from the year-round processing plant site that TSMC
is now constructing in the Timmins area."
Summary of Agreements
The multi-part cooperation agreements are summarized as follows:
-- The companies agreed to cooperate to develop the rail line that will
start near TSMC's Timmins Area processing plant and go through LIM's
Silver Yard facilities to the TSH main line.
-- The companies shall also coordinate their respective participation in
developing infrastructure at the Port of Sept-Iles with the objective of
establishing common access and terminal facilities to the Port's new
deep sea multi-user dock.
-- The companies have agreed to enter into transactions regarding the
development of LIM's Howse deposit and TSMC's Timmins 4 deposit. The
Howse deposit, containing 28 mill
ion tonnes of historical resources, is
four kilometers from TSMC's Timmins processing plant. TSMC will acquire
a 51% interest in LIM's Howse deposit, and LIM may earn up to a 100%
interest in TSMC's Timmins 4 deposit having resource of 1.7 million
tonnes to LIM for consideration of $3 million recoverable from sales.
-- As part of the proposed agreement, and subject to fulfillment of certain
conditions precedent, LIM will receive a cash injection of $30 million.
In future, TSMC has an option to infuse up to C$ 25 million in the Howse
project to further increase its interest in the Howse deposit to 70%.
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located
in the Province of Newfoundland and Labrador and in the Province of
Quebec, which holds one of the world's largest undeveloped magnetic
iron ore deposits. In the same area, the Corporation and Tata Steel
Limited, one of the largest steel producers in the world, are
advancing a DSO Project to near term production. Tata Steel Limited
owns approximately 26.3% of New Millennium and is the Corporation's
largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO
Project and has a commitment to take the resulting production (see
news release 10-16 dated September 14, 2010). The DSO Project is
owned and operated by TSMC, which in turn is 80% owned by Tata Steel
and 20% owned by NML. The DSO Project contains 64.1 million tonnes of
Proven and Probable Mineral Reserves at an average grade of 58.8% Fe,
21.0 million tonnes of Measured and Indicated Mineral Resources at an
average grade of 59.2% Fe, 10.3 million tonnes of Inferred Resources
at an average grade of 58.3% Fe and about 25.0 - 30.0 million tonnes
of historical resources that are not currently in compliance with NI
43-101 (see news release 09-03 dated February 11, 2009, news release
09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009,
news release 10-12 dated July 8, 2010 and news release 12-14, dated
May 31, 2012). A qualified person has not done sufficient work to
classify the historical estimate as current mineral resources or
mineral reserves, the Corporation is not treating the historical
estimate as current mineral resources or mineral reserves and the
historical estimate should not be relied upon.
The Millennium Iron Range currently hosts two advanced projects:
LabMag contains 3.5 billion tonnes of Proven and Probable reserves at
a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated
resources at an average grade of 29.5% Fe and 1.2 billion tonnes of
Inferred resources at an average grade of 29.3% Fe (see news release
06-13 dated July 5, 2006 and news release 07-11 dated July 17, 2007);
KeMag contains 2.1 billion tonnes of Proven and Probable reserves at
an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and
Indicated resources at an average grade of 31.3 % Fe and 1.0 billion
tonnes of Inferred resources at an average grade of 31.2% Fe (see
news release 09-01 dated January 16, 2009). Tata Steel also exercised
its exclusive right to negotiate and settle a proposed transaction in
respect of the LabMag Project and the KeMag Project (see news release
11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits. The
first is the Lac Ritchie property located at the north end of the
Range. The initial 2011 drilling of 40 holes in this property
revealed Indicated Resources of 3.330 billion tonnes at an average
grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at
an average grade of 30.9% Fe (see news release NR 12-11, dated April
Two other taconite deposits are located south of the LabMag deposit
in the Millennium Iron Range. The initial 2012 drilling of 23 holes
in the Sheps Lake property and of 50 holes in the Perault Lake
property revealed Indicated Resources of 3.580 billion tonnes at an
average grade of 31.22%, and Inferred Resources of 795 million tonnes
at an average grade of 30.56% (see news release NR 13-04, dated
February 11, 2013).
The Corporation's mission is to add shareholder value through the
responsible and expeditious development of the Millennium Iron Range
and other mineral projects to create a new large source of raw
materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com,
www.tatasteel.com, www.tatasteelcanada.com, and
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the
Qualified Persons as defined in National Instrument 43-101 who have
reviewed and verified the scientific and technical mining disclosure
contained in this news release.
This document may contain "forward-looking statements" within the
meaning of Canadian securities legislation and the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this document
and the Corporation does not intend, and does not assume any
obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future
performance and reflect management of the
or beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, success of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims
and limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Corporation to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements.
Such factors include, among others, risks related to actual results
of current exploration activities; changes in project parameters as
plans continue to be refined; future prices of resources; possible
variations in ore reserves, grade or recovery rates; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities; as well as those factors
detailed from time to time in the Corporation's interim and annual
financial statements and management's discussion and analysis of
those statements, all of which are filed and available for review on
SEDAR at www.sedar.com.
Although the Corporation has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be
as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking statements.
New Millennium Iron Corp.
President & Chief Executive Officer
New Millennium Iron Corp.
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