SYDNEY, AUSTRALIA: Cyclone Metals Limited (ASX: CLE) announced the acquisition of Labrador Iron Pty Ltd, 100% owner of the Block 103 Magnetite Iron Ore Project (Block 103, or the Project), located 30km northwest of Schefferville, Quebec, Canada.
Cyclone Executive Director, Tony Sage, commented: “We are very pleased to announce the acquisition of such a high-potential magnetite iron ore project in close proximity to other major iron ore producers and developers in a world class mining province and a Tier 1 jurisdiction of Newfoundland and Labrador, Canada.
The strategic geographical position of Block 103 with established infrastructure, services, and transport corridors, greatly supports the development potential of the asset. The presence of neighbouring mines run by Tier 1 producers including Tata Steel, likewise, offer many future operational opportunities for Cyclone.
Block 103 is the largest undeveloped magnetite deposit globally and comparable to other world-class producing assets and large developers. The acquisition positions Cyclone in comparison to other major iron ore players on the ASX and other exchanges.
The green transition and global targets towards net-zero carbon emission have made magnetite ore more desirable as it will be pivotal in emissions reduction for the iron ore and steel industries. We see tremendous potential for Block 103 to become a crucial piece of the iron ore supply worldwide whilst promoting the reduction of carbon emissions in the steel industry”.
Cyclone Metals Limited will issue the shareholders of Labrador Iron (or their nominees) a total of 2,160,000,000 CLE shares at the deemed price of $0.0025 per share (Consideration Shares).