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|WISCO Closes US$240-M Strategic Investment Into Canadian CLM|
|= Aiming to take part in iron ore development in Canada, uptake of products =|
Canadian Consolidated Thompson Iron Mines Limited (CLM) announced July 20 that CLM and Minerals Corporation Limited of Wuhan Iron and Steel (Group), a subsidiary of Wuhan Iron and Steel (Group) Corporation (WISCO), announced the closing of WISCO's strategic investment of US$240 million into CLM.|
Pursuant to the previously announced transaction terms, WISCO has made the first two payment installments for payment to CLM of an aggregate of US$200 million and CLM has issued to WISCO 38,681,023 CLM common shares representing approximately 19.9% of the issued and outstanding CLM shares post-transaction. Xiaopeng Yin, a WISCO nominee, will be joining the Board of CLM.
In addition WISCO now holds a 25% interest in a partnership established between the two firms to own and develop the Bloom Lake property. WISCO has committed to purchase, at fair market value, 50% of the ore produced by Bloom Lake, and has rights to purchase additional ore from Bloom Lake and a right of first offer to purchase ore produced from CLM's Lamalee and Peppler Lake properties.
The Bloom Lake Iron Ore Property is located in Normanville Township, Duplessis County, Province of Quebec, on the south end of the Labrador Trough, approximately 400 kilometers north of Sept-Îles. The Bloom Lake deposit is situated approximately 10 kilometers north of the Mont-Wright iron mining operation of ArcelorMittal Mines Canada (formerly QCM).
|last modified : Tue 28 Jul, 2009 [10:08]|