[miningmx.com] — PETMIN on Wednesday announced details of a $25m investment in its Canadian iron sands and pig iron joint venture project.
A deal signed in September 2010 gave Petmin the option to invest $25m for 40% of North Atlantic Iron Corporation (NAIC), which owns the project in Canada’s Newfoundland and Labrador province.
Petmin has to date invested $3.5m for 10.7% of NAIC. Petmin has joint management control of NAIC and the project, read a company statement. A further 9.9% of NAIC may be acquired at Petmin’s discretion, at a price to be negotiated.
The directors of Petmin believe that the project has a potential lifespan of more than 50 years and aims to produce 500,000 tonnes of pig iron during its first phase.
“This investment in Canada increases Petmin’s exposure to the steel value chain and commodities which underpin uranisation and infrastructure development,” said Bradley Doig, the Petmin director responsible for international expansion.
