New Millennium Iron Corp. Announces Closing of Sale of Portion of Multi-User Wharf Capacity at Sept-Îles, Quebec
November 19 2018 - 5:55PM
New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML)
announced today that the Company has closed the previously
announced transaction under which 6.5 million tonnes of the 15
million tonnes of annual wharf capacity reserved by NML in a July
2012 contract with the Sept-Îles Port Authority (the “Port”), along
with the associated rights and obligations, shipping rates and
other terms in the July 2012 contract were sold to Tacora Resources
Inc. (see NR 18-01 dated April 19, 2018).
Total cash consideration of $4 million was paid
to NML as scheduled and further payments to NML of $0.10 per tonne
of iron ore shipped under the sold capacity through the Port
facilities will commence from and after the date of the first
shipment.
Other than the reduction in NML’s annual wharf
capacity to 8.5 million tonnes, there will be no change to NML’s
existing arrangements with the Port regarding the rights and
shipping rates related to the remaining reserved capacity.
The new multi-user wharf is part of the
Pointe-Noire product handling and shipping terminal at
Sept-Îles.
About New Millennium
NML is a Canadian iron ore exploration,
evaluation and development company with an extensive property
position called the Millennium Iron Range (“MIR”) in Canada’s
principal iron ore district, the Labrador Trough, straddling the
Province of Newfoundland and Labrador and the Province of Quebec,
in the Menihek Region around Schefferville, Quebec. The
Company’s project areas are connected via a well-established,
heavy-haul rail network to the Port of Sept-Îles, Quebec.
Tata Steel Limited (“Tata Steel”), a global
steel producer and industry leader, owns approximately 26.2% of the
Company and is the Company’s largest shareholder.
NML has a 4.32% interest in Tata Steel Minerals
Canada Ltd. (“TSMC”), which is owner and operator of a direct
shipping ore (“DSO”) project near Schefferville. The DSO project
produces and ships sinter fines. Subsidiaries of Tata Steel
and the Quebec Government’s financing arm, Investissement Québec,
own the remainder of TSMC.
Beyond TSMC, the Company offers further
development potential through a group of seven, NI 43-101
compliant, long-life taconite properties capable of producing high
quality pellets and pellet feed to service the requirements of
steel makers with either blast furnace or direct reduced iron
making operations. Two of these deposits – LabMag and KéMag –
were the subject of large-scale development feasibility studies
carried out by the Company and Tata Steel, published in March 2014,
and filed on SEDAR.
With these feasibility study results as a
foundation, the Company reviewed its taconite development strategy
through the design of a smaller market entry initiative called the
NuTac Project, for which a NI 43-101 prefeasibility study was
carried out, published in June 2016, and filed on SEDAR.
In the currently challenging market environment
for new iron ore projects, NML has implemented cash conservation
measures, while protecting its mineral claims and iron ore
development positioning. The Company is now considering different
business opportunities.
For further information, please visit
www.NMLiron.com, www.tatasteelcanada.com and www.tatasteel.com.
Forward-Looking Statements
This news release contains certain forward
looking statements and forward looking information (collectively
referred to herein as “forward looking statements”) within the
meaning of applicable Canadian securities laws. All statements
other than statements of present or historical fact are forward
looking statements. Forward looking information is often, but not
always, identified by the use of words such as “could”, “should”,
“can”, “anticipate”, “expect”, “believe”, “will”, “may”,
“projected”, “sustain”, “continues”, “strategy”, “potential”,
“projects”, “grow”, “take advantage”, “estimate”, “well positioned”
or similar words suggesting future outcomes. In particular,
this news release contains forward looking statements relating to
future opportunities, business strategies, mineral exploration,
development and production plans and competitive advantages.
Although the Company believes that the expectations and assumptions
on which the forward looking statements are based are reasonable,
undue reliance should not be placed on the forward looking
statements because the Company cannot give any assurance that they
will prove correct. Since forward looking statements address
future events and conditions, they involve inherent assumptions,
risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
assumptions, factors and risks.
Management has provided the above summary of
risks and assumptions related to forward looking statements in this
news release in order to provide readers with a more comprehensive
perspective on the Company’s future operations. The Company’s
actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward looking
statements and, accordingly, no assurance can be given that any of
the events anticipated by the forward looking statements will
transpire or occur, or if any of them do so, what benefits the
Company will derive from them. The forward looking statements
contained herein are expressly qualified in their entirety by this
cautionary statement. The forward looking statements included in
this news release are made as of the date of this news release and
the Company does not undertake and is not obligated to publicly
update such forward looking statements to reflect new information,
subsequent events or otherwise unless so required by applicable
securities laws.
Contact:
Ernest DempseyChief Executive
OfficerTel: (514) 935-3204, X 349