- Cyclone Metals (CLE) completes its acquisition of Labrador Iron, owners of the Block 103 magnetite iron ore project in Québec, Canada
- The company says the project is the largest undeveloped magnetite deposit globally and comparable to other world-class producing assets and large developers
- The acquisition sets the company back $5.4 million, which Cyclone will pay via shares, issuing Labrador shareholders 2.16 billion shares at 0.25 cents each
- To assist with the cost of the transaction and initial work at the project, the company has proposed a $1 million capital raising with an oversubscription potential of $2 million
- Shares in Cyclone are up 33.3 per cent, trading at 0.2 cents as of 10:21 am AEDT
Cyclone Metals (CLE) has completed its acquisition of Labrador Iron, the owners of the Block 103 magnetite iron ore project in Québec, Canada.
The company said the project is the largest undeveloped magnetite deposit globally, comparable to other world-class producing assets and large developers.
The acquisition sets the company back $5.4 million which Cyclone will pay via shares, issuing Labrador shareholders 2.16 billion shares at an issue price of 0.25 cents each.
Executive Director Tony Sage said the acquisition positions Cyclone in close proximity to other major iron ore players on the ASX and other exchanges.
“The strategic geographical position of Block 103 with established infrastructure, services, and transport corridors, greatly supports the development potential of the asset,” Mr Sage said.
“The presence of neighbouring mines run by Tier 1 producers including Tata Steel, likewise, offer many future operational opportunities for Cyclone.”
Additionally, the company believes the project has “tremendous potential” to become a crucial piece of the iron ore supply worldwide, whilst promoting the reduction of carbon emissions in the steel industry.
To help with the cost of the transaction and initial work at the project, the company proposed a $1 million capital raising with an oversubscription potential of $2 million.
The shares will be priced at 0.25 cents and the issue is subject to shareholder approval.
Shares in Cyclone were up 33.3 per cent, trading at 0.2 cents as of 12:15 pm
AEDT.