Oceanic Iron signs MOU with Sinosteel on Hopes Advance
2018-01-30 08:18 ET - News Release
Mr. Steven Dean reports
OCEANIC ANNOUNCES MEMORANDUM OF UNDERSTANDING WITH SINOSTEEL MECC
Oceanic Iron Ore Corp. has signed a memorandum of understanding (MOU) with Sinosteel Equipment and Engineering Co. Ltd.
The MOU formalizes the understanding and intentions of the parties in respect of co-operation focused on the company's Hopes Advance project development. Specifically, Sinosteel MECC intends to assist in the arrangement of a future equity investment, offtake and project financing in exchange for future mining and plant-related infrastructure EPC work. The MOU is a non-binding agreement that both the company and Sinosteel MECC intend to evolve to binding project financing arrangements and EPC agreements at a future date.
Steven Dean, chairman of Oceanic, said: "We are pleased to have progressed discussions with Sinosteel MECC to the formalization of a memorandum of understanding. Oceanic acknowledges the qualifications and capacity of Sinosteel MECC and looks forward to an enduring relationship that has the potential to deliver significant mutual benefits. With the assistance of both Sinosteel MECC and PowerChina Huadong who each have capability, technical expertise and track records in mining, processing plant, power plant and port, respectively, this as an important step toward the future development of the Hopes Advance project."
Li Ye, deputy marketing department manager of Sinosteel MECC, added: "Sinosteel MECC acknowledges the good business opportunities presented by Oceanic and is very happy to have signed an MOU. Sinosteel MECC is also very happy to work with PowerChina on this high-quality low-cost iron ore project and the co-operation between two major Chinese companies on one Canadian project will be a very good example for economic co-operation between two nations."
About Oceanic Iron Ore Corp.
Oceanic is a feasibility-stage company focused on the development of its 100-per-cent-owned Hopes Advance, Morgan Lake and Roberts Lake iron ore development projects located on the coast in the Labrador Trough in Quebec, Canada. In November, 2012, the company published the results of the prefeasibility study completed in respect of the flagship Hopes Advance project outlining a base-case pretax NPV8 (net present value at an 8-per-cent discount) of $5.6-billion (posttax NPV8 of $3.2-billion) over a 30-year mine life, supported by a National Instrument 43-101 proven and probable reserve of approximately 1.36 billion tonnes and a life of mine operating cost of approximately $30/tonne. The prefeasibility study is available for review on the company's website and SEDAR.
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