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Labrador Iron Mines Announces Strategic Relationship with Tata Steel Minerals Canada; Shares Up 26%

Labrador Iron Mines Holdings Limited (LIM.TO) has entered into a framework arrangement with Tata Steel Minerals Canada, a subsidiary of Tata Steel Limited, to establish a strategic relationship between LIM and TSMC. The two companies have agreed to co-operate with each other in various aspects of their respective iron ore operations in the Labrador Trough and enter into definitive agreements to formalize this arrangement in due course.

Both LIM and TSMC operate adjacent DSO iron ore projects in the Province of Newfoundland and Labrador and in the Province of Quebec, near Menehik, Labrador and Schefferville Quebec, and both utilize and intend to utilize the same rail and port infrastructure.

The strategic relationship will include multi-part co-operation agreements in areas of logistics; property rationalization and various ancillary mutual support and potential off-take arrangements. As part of the logistics agreements, the companies shall formalize arrangements for development of the rebuilt rail line that will pass through LIM's Silver Yards facilities from TSMC's new Timmins Area processing plant to the TSH main rail line.

LIM is up 17 cents (26.15%) to 82 cents late morning, which is still near yr lows of 56 cents.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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