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NR1621

07/26/2016

CALGARY, Alberta, Canada (Marketwired – July 26, 2016) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) today announced the award of a financial contribution of $175 million by the Québec Government (“Government”) to Tata Steel Minerals Canada (“TSMC”), in which NML has a minority interest, in support of TSMC’s direct shipping ore (“DSO”) project. 

The announcement follows a January 2016 agreement-in-principle between the parties (see NR 16-02 dated January 21, 2016) and was made in conjunction with a news conference held today in Sept-Îles, Québec, and attended by senior Government officials, including the Deputy Premier, Mrs. Lise Thériault, and the Minister of Energy and Natural Resources, Mr. Pierre Arcand, who is also responsible for the Plan Nord and North Shore Region, as well as by senior representatives of TSMC and NML.

The related transaction would include a loan of $50 million from Investissement Québec, acting as an agent of the Government, as well as an equity stake of $125 million through the Government’s Capital Mining Hydrocarbons Fund.  No determination has been made as to the effect on the Company’s interest in TSMC as a result of the Government investment.   

Robert Patzelt, NML’s President and CEO, said, “This very significant award solidifies the future of the DSO project and, when coupled with the Government’s investment in rail and port assets in the Sept-Îles area at Pointe Noire, underscores the Government’s support of our industry and communities during these challenging times.  We look forward to a successful completion of this important initiative.”

 


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