Energy Materials

Cyclone Metals (ASX:CLE) & Vale Sign Iron Bear Agreement

ClubAI 12:49 pm

Development Agreement

Cyclone Metals Limited (ASX:CLE) has signed a binding commercial agreement with Vale S.A. to jointly develop the Iron Bear iron ore project in Canada. Under the agreement, Vale can provide up to USD138 million in funding across two phases and earn a 75% stake in the project. Vale may acquire an additional 25% or allow Cyclone to carry the project to production without dilution.

Phase Details

In Phase 1, Vale will contribute USD18 million for a pre-feasibility study and environmental works. Upon completion, Vale may choose to initiate Phase 2, which involves forming a joint venture and funding up to USD120 million to advance the project toward Decision to Mine.

Executive Comments

Paul Berend, CEO of Cyclone Metals Ltd, stated, “Project Iron Bear has now secured a clear pathway to get into production, and to become a world leader for the supply of low cost and ultra-low carbon iron ore products. Vale dominates the rapidly growing market for low carbon and direct reduction iron ore products and is an ideal partner and future operator for the Iron Bear project.”

View Original Announcement

here

Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.