Titan Iron Ore Corp a Tucson, Arizona based company engaged in the acquisition and development of iron ore mining properties located in regions that have stable politics, sound economies and friendly business environments, on Thursday, announced that it delivered notice of its decision to exercise its option to acquire the Strong Creek and Iron Mountain mineral claims located in Albany County, Wyoming.

The mineral claims known as Wyoming Iron Complex include mineral leases and unpatented mining claims totaling approximately 683 acres. The Wyoming Iron Complex is wholly owned by Wyomex LLC a Wyoming limited liability company.

TFER has already completed its Phase I drilling program on the Strong Creek portion of the property earlier this month. The company is currently assaying the core and results so the 3 holes are expected shortly. The Wyoming Iron Complex was previously owned and explored by Union Pacific RP. Historical feasibility and metallurgical studies have shown the ore at Wyoming Iron Complex contains magnetite, titanium and vanadium.

Titan Iron Ore had announced the signing of the option agreement earlier this year. Under the option agreement, TFER has exclusive right and option to acquire a 100% undivided legal and beneficial interest in the property. The purchase price of the property is USD 7 million, which can be paid over time, and consists of 4.5% gross metal value royalty, payable prior to production as a minimum advance of USD 62,500 every 6 months and upon commercial production from the property, a minimum of USD 150,000 per year.

On the completion of the USD 7 million payments and the gross metal value royalty will reduce to 1.5% on metals production. TFER expects to take title to the property by entering into and closing a definitive Asset Purchase Agreement early next year.

TFER plans to use a pyro metallurgical process for the Wyoming project to produce an enhanced iron product that will directly compete against imports of Pig Iron and Direct Reduced Iron. The process will also produce vanadium pentoxide. TFER is also evaluating other opportunities that will allow it to build upon its ability to service the industry, diversify its product range and create shareholder value.