Tuesday 21st May 2019

Resource Clips

Hilltown Resources plans Brazil Iron Mine Production in JV with Socoimex

Resource Clips - essential news on junior gold mining and junior silver miningHilltown Resources Inc CNSX:HLT and Mineracao Siderurgia Socoimex Ltda announced a joint venture to produce iron ore at the Capanema Iron Mine in Minas Gerais State, Brazil. Hilltown will contribute US$30 million and Socoimex $22 million of the total capital cost. Socoimex will act as project operator of the 50/50 JV.

Socoimex won the bid to acquire the mine from Companhia Vale do Rio Doce NYSE:VALE and produce a minimum of 20 million tonnes of high-grade iron ore (62% Fe) over 13 years. The agreement includes a three-year licensing and development/implementation plan and a 10-year production plan. Scheduled production is set at approximately two million tonnes per year, which may be increased to four million tonnes at ValeĀ“s option. Vale is the largest mining company in Brazil and the second-largest in the world.

Vale will buy 95% of the ore produced at a minimum price of approximately $58 per tonne, with an annual inflation adjustment. Vale will receive a royalty of approximately $32.88 per tonne.

The acquisition of Capanema mineral and production rights by Socoimex will take place by March 1, 2012.

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Hilltown Resources Inc
Rudy de Jonge

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by Greg Klein

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