Cyclone Metals and Vale sign $138m deal to develop Iron Bear project

Cyclone Metals Ltd (ASX: CLE) has signed a $138 million agreement with Vale (NYSE: VALE) for the joint development of the Iron Bear iron ore project in Canada.Under the agreement, Vale will provide funding for the project in two phases, earning a 75% interest in Iron Bear. If the Brazilian miner proceeds with a decision to mine, it will have the option to acquire the remaining 25% at fair market value or carry Cyclone through to production without dilution.According to Cyclone, the first phase will see $18 million allocated to a preliminary feasibility study, mineral resource drilling, and environmental baseline studies. In the second phase, Cyclone and Vale will form a joint venture to advance through a bankable feasibility study, conduct environmental impact studies, establish Impact Benefit Agreements (IBAs) with First Nations, and undertake general de-risking activities.During the second phase, Vale will provide $120 million in funding to the joint venture.The Iron Bear project is located in Canada, less than 25 km from an open-access heavy-haul railway connected to an iron ore export port at Schefferville. The project hosts an iron ore resource of 16.6 billion tonnes at 29.3% iron. Cyclone reports that pilot plant production has confirmed a high-quality direct reduction concentrate grading 71.3% iron.Development is progressing, with bulk samples of direct reduction and blast furnace concentrates expected to be available for steel mill clients in the first quarter of 2025, followed by pellet production in the second quarter.Other large-scale iron ore operations in the region include Rio Tinto’s Iron Ore Company of Canada, Champion Iron, and Tata Steel, all of which share the same rail and port infrastructure.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com