LABRADOR Calgary-based NEW MILLENNIUM CAPITAL CORP. (NML) has arranged a private placement with India’s TATA STEEL whereby Tata will acquire 19.9% of NML common shares. Tata will acquire over 26 million shares at a cost of $0.90/share, making the deal worth slightly more than $23.5 million.
Additionally, Tata will be given the option to acquire an 80% equity interest in New Millennium’s direct shipping ore (DSO) project. If Tata takes up the option, it will pay 80% of NML’s costs incurred to that date. Tata will also fund up to $300 million to earn its 80% share and will take 100% of the DSO iron ore production for the life of the mine. Subject to completion of a positive feasibility study, regulatory approvals and project financing, NML expects to produce 4.0 million t/y of iron ore products from the DSO project commencing in 2010.
Tata will also have an option on the LabMag taconite property until June 30, 2009. The LabMag property is owned 20% by the Naskapi Nation of Kawawachikamach.
Tata will nominate two directors to the NML board.
Information on NML’s projects is available at www.NMLResources.com.