NUNAVUT - A joint venture of Toronto-based Advanced Explorations, Xinxing Ductile Iron Pipes (XDIP) and China Huaxin International Trade Co. (HIT) has been formed to develop the Roche Bay iron ore project. The property lies on the eastern portion of the Melville Peninsula.
XDIP and HIT have agreed to acquire 19% of Advanced's outstanding stock for $0.25/share in a deal worth $5.3 million. XDIP will earn a direct interest in the Roche Bay JV by provided up to $20.0 million towards completion of the definitive feasibility study and a further $30.0 million in working capital when the DFS is complete. XDIP has also agreed to finance mine development up to a maximum of $1.0 billion. The Chinese partner has been granted a 50% off-take agreement for all iron products from the mine.
The DFS is due in Q2 2011. Permitting and construction will then take place for a 2013 startup. Using a cutoff grade of 20% Fe, total inferred resources are 500.3 million tonnes averaging 26.75% Fe.
The Roche Bay photo gallery at www.Advanced-Exploration.com is stunning.