BC Iron Limited (BCI) is pleased to announce that it has entered into an Iron Ore Strategic Alliance with Cleveland Mining Company Ltd (CDG), an emerging Brazilian iron ore development company. Under the terms of the Alliance, BC Iron is taking a 5% equity stake in Cleveland for approximately $6 million. BC Iron and Cleveland will form a 50:50 joint venture aimed at acquiring and developing new iron ore projects in Brazil.
BC Iron continues to maintain a strong focus on growing its Pilbara operations in line with its three tiered growth strategy. As the third tier of its growth strategy, this development provides BC Iron with the opportunity to enter the Brazilian iron ore space without the long lead time needed to ‘come up to speed’ in a new jurisdiction, and at a relatively low cost.
BC Iron will take a 5% interest in Cleveland Mining Company Ltd through a placement at ~A$0.64 per share. As part of the placement, and subject to it maintaining a 5% holding and regulatory approvals, BCI will have top up rights for two (2) years enabling it to participate in any new offerings so it can maintain its percentage interest.
The existing projects in Cleveland’s Amapá Hub, including the Ferradura Iron Project, will not at this stage form part of the Alliance.