Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Quebec minnow Century Iron Mines (CVE:FER) said Wednesday that China’s Wuhan Iron and Steel (WISCO) will invest $120 million over two years in three joint ventures to explore and develop the company’s Duncan Lake, Attikamagen and Sunny Lake projects in Quebec.
The joint venture agreement was signed on Tuesday in Beijing with the premier of Quebec in attendance. Century Iron hardly trades but on Wednesday the company enjoyed a tenfold increase in volumes on the Toronto exchange with 44,000 shares exchanging hands. It ended the day flat at $2.60 with a market value of less than $1 million.
The deal has to be okayed by regulators in Toronto and China and will be undertaken by Century Iron Mines’ subsidiary, Century Iron Ore Holdings and WISCO International Resources Development & Investment, a unit of WISCO.
Under the agreement, Century Iron will keep a 60% stake in its Duncan Lake property, while WISCO Resources will spend $40 million for a 40% interest. WISCO’s investment comprises of $20 million to be paid in 15 days of a definitive agreement plus an extra $20 million at the end of the first year.
The joint venture agreements for the Attikamagen and Sunny Lake projects will see Century Iron’s subsidiaries retaining a 60% stake with WISCO spending $40 million into each project during an initial two year timeframe, in exchange for a 40% stake.
The deal was inkied at a signing ceremony held in Beijing on August 30, 2011 with Deng Qilin, Chairman and President of Wuhan Iron & Steel (Group) Corporation on behalf of WISCO Resources, Sandy Chim, President and CEO of Century Iron and the Honourable Jean Charest, Premier of Quebec attending.
4 Comments
Geoffrey Gates
Might be a good idea for Century;s Board to review the news items for Goldbrook Ventures (GBK.TSX) starting 9/21/10. Caveat vendor!!
Handyman
go catch a raccoon .
Sailor Mac
Ah Canada – We can’t wait to sell out! First to England, then to the USA, now to China. Is there nobody in Canada who could have raised the money?
MINING.com Editors
On the TSX Venture Century Iron Mines Corporation trades under TSX.V:FER with 92.8 million shares outstanding which at $2.50, the closing price on 6 September, gives it a market value of $232 million.
Google Finance’s CVE:FER figures are quoted in the article.