Century Iron Mines said that it has extended the date of signing definitive business venture agreements for the Duncan Lake, Sunny Lake and Attikamagen individual iron ore projects, as under an initial joint venture deal laid out in August with China's Wuhan Iron and Steel (WISCO) International.
Century Iron and Wisco said they have worked diligently to complete the negotiation and settlement of documentation for the project agreements, but in view of the "scale and complexity" of the properties and the substantial investment that is to be made by Wisco, additional time is required to complete the final deals.
The parties have agreed to an extension of the signing dates for the project agreements until November 29, 2011.
Mr Sandy Chim president and CEO of Century Iron said “We are very pleased with the spirit of partnership with WISCO Resources during the process of negotiation of the Project Agreements over the course of the last two months. WISCO Resources is one of the major subsidiaries of Wuhan Iron & Steel (Group) Corporation, a world class integrated iron and steel company, with excellent internal control procedures and processes governing important aspects of major project undertakings. WISCO Resources and Century Iron are confident that the foundation of a very strong strategic partnership is in place to advance the success of our Projects. The terms of the Project Agreements are very advanced and I look forward to the signing of these Agreements when the internal procedures are complete and to working together with WISCO Resources.”
Century Iron said planning of the programs in respect of the projects is well underway.
Under the agreement announced in August, Century Iron Mines said China's Wisco would 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.
As the initial terms were laid out in August, the joint venture agreement, which is still subject to Toronto Stock Exchange as well as Chinese regulatory approval, will see Century Iron keep a 60 percent stake in its Duncan Lake property, while Wisco Resources will spend CAD 40 million for a 40% interest. Century Iron would also retain a 60% stake in the Attikamagen and Sunny Lake projects, with Wisco spending CAD 40 million into each project within a two year timeframe, in exchange for a 40% stake.
(Sourced from proactiveinvestors.com)
