Business
Northern Iron and Ontario Iron Mining Inc. sign MOU to fund development of Ear Falls/Red Lake iron ore properties.
Both firms to share costs on rail, power and reduction facilities. NFE will manage ...
About this update from Ares Strategic Mining Inc
[{"type":"text","content":"\n\n\n\n\n\nBoth firms to share costs on rail, power and reduction facilities.\n\n\nNFE will manage mining and production on both NFE and OIMI assets.\n\n\nOIMI will focus on sourcing the entire capital investment from Asian\n investors.\n\n\nOIMI to market iron products in Asia.\n\n\nVANCOUVER, March 5, 2013 /CNW/ - Northern Iron Corp. (\"Northern\" or the \"Company\") (TSX-V: NFE) (OTCQX-\n NHRIF) (FRANKFURT: N8I) today announced the signing of a non-binding Memorandum of\n Understanding with Ontario Iron Mining Inc. (OIMI). The MOU outlines\n how both firms will work together to bring the properties OIMI has\n agreed to purchase subject to satisfaction of certain conditions and\n the properties currently owned by NFE to the production stage.\n\n\n\"The assets where we have agreed to share costs are the most capital\n intensive part of bringing this area into production. This MOU is a\n further step in de-risking the development of the Griffith mine,\" says Basil Botha, President and CEO of Northern Iron. \"We believe that by working\n together we can create hundreds of quality jobs and re-develop an area\n of Canada that was a historic iron mining region. The Red Lake-Ear\n Falls area will benefit from this partnership and our access to deep\n pocketed investors in Asia.\"\n\n\nJason Li, CFO of OIMI said, \"We view the logistics of this area to be\n the most favourable of any Canadian iron ore deposit that we have\n investigated. Our investors appreciate the existing infrastructure and\n the political stability of Canada. We also believe that there is\n minimal downside risk as the area is a past producer.\"\n\n\nBoth firms agree that they will benefit mutually from shared: rail,\n power supply and production facilities and have agreed under the MOU to\n cooperate as follows:\n\n\nShare capital costs to rebuild and update the rail, power and production\n facilities.\n\n\nEach firm will work towards mining iron ore from their wholly-owned\n properties however Northern Iron will manage mining, crushing and beneficiation at all the properties as\n they come into production.\n\n\nOre from satellite properties will be processed at the Griffith property\n and processed into Hot Briquetted Iron (HBI) for export.\n\n\nOIMI will endeavour to fund the project's capital requirements from\n Asian investors and will manage the marketing o...