Labrador Iron Mines Holdings Limited (TSX:LIM) reported that the previously announced joint venture with Tata Steel Minerals Canada Ltd. for the exploration and development of LIM’s Howse iron ore deposit in the Schefferville region of the Labrador Trough has been completed.
As quoted in the press release:
Under the terms of the joint venture agreement, TSMC and LIM have agreed to form an unincorporated joint venture (the “Joint Venture”) pursuant to which Howse Minerals Limited, a wholly owned subsidiary of TSMC (“HML”), has acquired an initial 51% participating interest in the Howse Property for a total cash consideration of $30 million.
As part of the Joint Venture, LIM will conduct a $5 million exploration program on the Howse Property over the course of the 2013 calendar year. The exploration program will comprise a targeted 70 holes with up to 10,000 metres of drilling. The objective of the drill program is to convert the historical resources to National Instrument 43-101 (“NI 43-101″) compliant mineral resources by spring 2014 and to collect metallurgical, geotechnical, hydrogeological, and hydrology information to advance Howse towards production.
Following completion of LIM’s $5 million exploration program, and the calculation of a new NI 43-101 resource, HML shall contribute the next $23.5 million to the Joint Venture and thereby increase its participating interest in the Howse Deposit to 70%. It is currently planned to complete a feasibility study by July 2014, with a target for commencement of mine development in 2015 and commercial production in 2016.