Cyclone Metals, Vale Reached Agreement on Iron Bear Project Development
February 18, 2025 03:30:10 PM
Under the terms of the agreement, Vale intends to acquire 75% interest in the project by providing funding in two phases.
By Paul Ploumis
SEATTLE (Scrap Monster): Cyclone Metals and Vale have agreed to work together to develop the Iron Bear iron ore deposit in Newfoundland Labrador, Canada. The total value of the deal is $138 million.
According to the deal, Vale plans to fund the project in two stages in order to obtain a 75% stake. If the corporation chooses to move forward with iron ore mining, it will have the opportunity to purchase the remaining 25% interest. Otherwise, it may transport Cyclone without diluting all the way to production.
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$18 million will be allocated in the first funding phase to conduct environmental baseline research, mineral resource drilling, and early feasibility studies. The second round of investment, totaling $120 million, will be used for de-risking initiatives, environmental impact studies, and agreements with First Nations.
Cyclone predicts that pellet manufacturing will start by Q2 2025, with substantial samples of blast furnace and direct reduction concentrates being available in the first quarter of 2025.
A high-quality direct reduction concentrate with a 71.3% grade was proven by the pilot plant production. An estimated 16.6 billion tonnes of mineral resources with a 29.3% iron grade are present at the project.
