The Montreal Gazette reported that Adriana Resources Inc's big Lac Otelnuk iron ore project, 170 kilometers north of Schefferville, took a step forward when its partner, China's Wuhan Iron & Steel Co completed an initial USD 120 million investment.

WISCO, China's third biggest steelmaker, took up 29.24 million Adriana shares at 97 cents a share for a total of USD 28.4 million, giving it a 19.9% equity stake in Adriana. WISCO has also invested USD 91.6 million in the JV to develop a mining and processing operation, bringing its total initial investment to USD 120 million.

It is also committed to help finance 70% of the project's capital cost and to contribute to funding the feasibility study to come. Otelnuk South has an estimated resource of 4.3 billion tonnes. The northern portion of the property has not yet been drilled.

Mr Allen Palmiere CEO of Adriana said that "WISCO's position as our largest single shareholder and strategic partner will allow us to accelerate our key Quebec Labrador project."

The company also participates in a major iron ore export port near Rio de Janeiro and ultimately plans to mine iron ore in Brazil.

(Sourced from www.montrealgazette.com)