[miningmx.com] – DIVERSIFIED mid-tier mining company, Petmin, has
bought a further 5.5% of North Atlantic Iron Corp. (NAIC) for $4.5m taking its
overall stake to 22.5%, the company announced to the JSE today.
Petmin has the option of taking its investment in the company, which could produce
up to 500,000 tonnes/year of pig iron in a first-phase project, to 40% for a total of
$25m. It can also acquire a further 9.9% of the company at market-related prices.
NAIC is developing a low-cost pig iron feedstock project in Canada’s Labrador
province. The pig iron can be beneficiated into a high-purity product.
“The resource statement, based on just 3% of the NAIC claim, indicates a 20 to 25
year life of mine for Phase 1 production of 500,000 tonnes of pig iron annually,”
Petmin said in its announcement.
Petmin has joint management control of the project.
“Geological and metallurgical results to date give Petmin good reason to be
optimistic about its investment in NAIC,’ said Petmin director of business
development, Bradley Doig.
“We are confident NAIC will soon have independent verification that the project will
deliver a quality concentrate, which becomes a low-cost feedstock for high-purity pig
iron,’ Doig said.
“The project’s proximity to major steel markets, and access to labour and essential
infrastructure such as power and a deep-water port mean we expect NAIC
production to be in the lowest quartile of the cost curve,” he added.
