CALGARY, Alberta, Canada (Marketwired – December 6, 2017) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) announced today that it has reached a settlement with the Port of Sept-Îles (the “Port”) regarding its disputed July 2012 Contract with the Port (the “Contract”), under which NML reserved annual iron ore loading capacity of 15 million tonnes at the Port’s new multi-user dock and advanced funds totalling $38.4 million towards construction of the dock (see NR 12-17 dated July 18, 2012).
The dispute centered on the parties’ different interpretations of the Contract, specifically with the triggering of take-or-pay payments against future shipping, wharfage and equipment fees (see NR 16-11 dated May 11, 2016 and NR 16-18 dated June 28, 2016).
For NML, as a multi-user dock participant presently without shipping operations, the settlement provides that the funds previously advanced by NML, coupled with a mechanism for adjusting NML’s reserved dock capacity over the contractual period, will satisfy NML’s take-or-pay obligation and NML has no further funding requirements in respect of the take-or pay obligation. Once the funds previously advanced are fully offset against the take-or pay obligation, NML could reduce its reserved capacity proportionately based on the remaining term of the Contract. In all other respects, NML retains all its rights under the Contract.
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