Century Iron Mines says China's Wuhan to invest $120 million in Quebec joint ventures

Century Iron Mines (CVE:FER) said Wednesday that China's Wuhan Iron and Steel (WISCO) will invest $120 million over two years in three joint ventures to explore and develop the company’s Duncan Lake, Attikamagen and Sunny Lake projects in Quebec. 

The joint venture agreement, which is subject to Toronto Stock Exchange as well as Chinese regulatory approval, will be undertaken by Century Iron Mines' subsidiary, Century Iron Ore Holdings and WISCO International Resources Development & Investment, a unit of WISCO. 

Under the agreement, Century Iron will keep a 60% stake in its Duncan Lake property, while WISCO Resources will spend $40 million for a 40% interest. WISCO’s investment comprises of $20 million to be paid in 15 days of a definitive agreement plus an extra $20 million to be paid on the first anniversary of the deal's execution. 

Century Iron’s subsidiaries will retain a 60% stake in the Attikamagen and Sunny Lake projects, with WISCO spending $40 million into each project in a two year timeframe, in exchange for a 40% stake, according to the company. 

In a press release, Century Iron’s Chief Executive Sandy Chim said: “The execution of the joint venture agreement solidifies both our and WISCO Resources' commitment for the funding and advancement of the Duncan Lake, Attikamagen and Sunny Lake projects.” 

“We believe the projects will be of great benefit, both to ourselves and WISCO Resources, as our joint venture partner, and to the people and economy of the Province of Quebec, and of Canada at large," Chim said.

WISCO’s President Deng Qilin said in a statement that “This milestone is the first step of our undertaking to develop promising iron ore projects in Canada with our partner Century Iron with the view of taking them to production.” 

Century Iron is an emerging iron ore exploration and development company and holds interests in the Duncan Lake project, the Attikamagen project and the Sunny Lake project. 

The Toronto-based company’s shares were trading at $2.60 Wednesday afternoon.

Wednesday's deal was part of a Quebec trade delegation to China, promoting co-operation and participation in mineral exploration and mining projects in the Canadian province.