Whilst I will start by saying "Hope is not a strategy", to give...

Whilst I will start by saying "Hope is not a strategy", to give holders some hope, its worth having a look at Cyclone Metals (ASX:CLE) and their MuO with Vale.

From the brief research that I have done, 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. No PFS as yet. However, cash was running low ($649k at June) and therefore a share placement in July for $1.8M including a share consolidation and announcement to raise a further $5.4M. However, planned capital raise dates have been extended.

During the period for which they are attempting to raise capital (still ongoing), they announce an MoU with Vale (Friday 15th).

Any of this sounding familiar so far?

However, unlike MGT's MoU with JFE, CLE's 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 for the finalise agreements, which is a much tighter and definitive timetable that helps makes the deal appear much more probable.

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.

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.

The question is which projects will get DFS funding and end up being a mine.

Worth keeping an eye on CLE to see if their MoU with Vale is turned into a binding agreement.