@Mas37 - thanks for sharing details of ASX:CLE's announcement...

@Mas37 - thanks for sharing details of ASX:CLE's announcement with Vale - very interesting and shows the type of deal that could be structured with a JV partner even though there is little more than a resource and very low market cap.

To provide a brief overview for those interested, CLE have a large magnetite resource in Canada's Labrador Trough. They have done some drilling, produced some DR grade feed from those drill cores and shopping that around potential customers. However, they don't have the cash to continue to advance the project to PFS, so they have announced an MoU with Vale.

The CLE-Vale deal is significant. Vale will spend up to $US18M without securing any interest (CLE's market cap was around AU$15M prior to announcement) and Vale will earn up to 75% by spending US$120M or making a decision to mine.

The MoU has a lot of detail and reads more like a Heads of Agreement that has a clear intention from both parties to be turned into legally binding documents - very different to the more generic MoU that was announced by MGT. Further, there is an exclusivity period of 90 days to finalise agreements, which is a much tighter and definitive timetable that helps makes the deal appear much more probable.

This potential deal with Vale and Hancock Prospecting's JV on Mt Bevan project (ASX: LCY and ASX:HAW) shows that there is interest from the big end of town for magnetite projects with little more than a resource and their willingness to fund PFS/DFS studies. Worth keeping an eye on CLE to see if their MoU with Vale is turned into a binding agreement.