Century Iron Mines Corporation and Altius Minerals Corporation announced that their previously announced transaction to acquire four regional iron ore projects in the Labrador Trough has been completed.
Century and Altius have entered into a principal agreement pursuant to which Century has agreed to acquire the right, title and 100% interest in and to four groups of early stage iron ore properties located in the Labrador Trough region of western Labrador held by Altius.
These are the Astray, Grenville, Menihek and Schefferville properties. The consideration for the acquisition of the Projects was more fully disclosed in the Century News Release dated November 10th 2011.
As part of the closing of the transaction, Century and Altius have entered into a royalty agreement pursuant to which Century has granted and will pay to Altius a 1% to 4% sliding scale gross sales royalty in respect of iron ore produced from the projects on terms and conditions as set out in the Royalty Agreement. The company has also agreed to incur aggregate exploration expenditures on the Projects in a minimum amount of USD 28,000,000 and make certain share payments to Altius over a five year period following the Closing Date contingent on the achievement of NI-43-101 resource definition milestones as previously disclosed.
Mr Sandy Chim president & CEO of Century said that "We are delighted to have completed the acquisition of the four Altius iron ore properties in the Labrador Trough. I very much look forward to continuing our partnership with the professional team at Altius, a highly regarded Newfoundland and Labrador company, to develop the Projects to production."
Mr Brian Dalton president & CEO of Altius said that "Century Iron and its Sandy Chim led entrepreneurial team represents an excellent partner for Altius and we are pleased to announce this successful deal closing. Century has the ambition, skill and international business relationships required to rapidly define and develop resources from this extensive package of properties. Altius looks forward to providing continuing support and to a very mutually beneficial long term partnership with Century Iron Mines."
