CALGARY, Alberta, Canada (Marketwired – April 19, 2018) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) announced today that it has entered into binding agreements with the Sept-Îles Port Authority (“Port”) and Tacora Resources Inc. (“Tacora”) under which a portion of the Company’s multi-user wharf capacity will be sold to Tacora in conjunction with Tacora’s planned re-start of the Scully Mine located near the town of Wabush, Newfoundland and Labrador.
The agreements call for Tacora to purchase the rights to 6.5 million tonnes of the 15 million tonnes of annual wharf capacity reserved by NML in a July 2012 contract with the Port, along with the associated rights and obligations, shipping rates and other terms in the July 2012 contract.
Total consideration is comprised of $4 million payable to NML on the closing date and further payments to NML of $0.10 per tonne shipped by Tacora through the Port facilities over a 20-year period following the close of the transaction.
The transaction is subject to Tacora completing its project financing activities now in progress and customary conditions precedent being satisfied, including execution of other product handling agreements and obtaining necessary legal and regulatory documentation. Upon confirmation that all conditions precedent are met, which must occur on or prior to August 30, 2018, NML and Tacora will have a 15 day period in which to complete the sale.
Other than the reduction in NML’s annual wharf capacity to 8.5 million tonnes, there will be no change to NML’s existing arrangements with the Port regarding the rights and shipping rates related to the remaining reserved capacity.
The new multi-user wharf is part of the Pointe-Noire product handling and shipping terminal at Sept-Îles.
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