Just the facts: Cyclone Metals signs MoU with Vale SA to advance Iron Bear Iron Ore Project [Video]

Proactive’s Tylah Tully breaks down ‘Just the Facts’ of the latest news from Cyclone Metals Ltd (ASX:CLE).

The company has signed a Memorandum of Understanding (MoU) with Vale SA to develop the Iron Bear project in Canada, with a goal to reach a Decision to Mine (DTM).

In Phase 1, Vale will invest up to US$18 million in feasibility studies, resource drilling and environmental assessments.

If Vale proceeds to Phase 2, it will initially gain a 30% stake in Iron Bear, which could increase to 75% upon reaching US$120 million in total investment or opting for a DTM.

Upon DTM approval, Vale may acquire Cyclone’s remaining 25% interest, pending shareholder approval. Alternatively, Vale could finance Cyclone’s capital expenses, allowing Cyclone to retain its 25% interest with repayment from future profits.

The MoU includes rights of first refusal, tag-along and drag-along rights on share sales. A formal agreement is expected within 90 days to establish …