The Block 103 magnetite iron ore project is situated within the Labrador Trough, which accounts for 99% of Canada's iron ore and is one of the largest iron ore belts in the world
Cyclone Metals acquires Labrador Iron. (Credit: Cyclone Metals Limited)
Cyclone Metals, an Australian mineral development and investment company, has announced the acquisition of Labrador Iron, which holds a 100% interest in the undeveloped Block 103 magnetite iron ore project in Quebec, Canada.
Located 30km northwest of Schefferville, the magnetite iron ore project covers an area of 7,275ha.
The Block 103 magnetite iron ore project is situated within the Labrador Trough, which accounts for 99% of Canada’s iron ore and is one of the largest iron ore belts in the world.
According to Cyclone Metals, Block 103 is the largest undeveloped magnetite iron ore project in the world with a historical mineral resource of 7,200Mt @ 29.2% Fe.
A total of 115 drillholes were drilled at the project, totalling 28,021m so far and two mineralisation zones have been defined, which are the Northwest Zone and the Greenbush Zone.
Cyclone Metals executive director Tony Sage said: “The strategic geographical position of Block 103 with established infrastructure, services, and transport corridors, greatly supports the development potential of the asset.
“The presence of neighbouring mines run by Tier 1 producers including Tata Steel, likewise, offer many future operational opportunities for Cyclone.
“Block 103 is the largest undeveloped magnetite deposit globally and comparable to other world-class producing assets and large developers. The acquisition positions Cyclone in comparison to other major iron ore players on the ASX and other exchanges.”
Under the terms of the agreement, Cyclone Metals will issue a total of 2.16 billion shares of the company to the shareholders of Labrador Iron at the deemed price of AUD0.0025 ($0.0017) per share.
The transaction is subject to receipt of all the essential regulatory approvals and Cyclone Metals completing a capital raising of no less than AUD1m ($0.68m) and up to AUD2m ($1.37m).
The capital to be raised is expected to fund the initial work on the project, the costs of the acquisition, and general working capital.