Century Iron Mines (TSE:FER) and Altius Minerals (TSE:ALS), said Tuesday that their previously announced transaction for Century to acquire four regional iron ore projects in the Labrador Trough has been completed.
Century and Altius entered into a principal agreement in September, under which Century agreed to acquire a 100 percent interest in four groups of early‐stage iron ore properties located in the Labrador Trough region of western Labrador, held by Altius, known as the Astray, Grenville, Menihek and Schefferville assets.
In consideration, Century will issue 40 million shares of its common stock, including 2.0 million shares upon the closing of the transaction, and 3.0 million shares on or before the second anniversary of the closing date, with remaining shares shelled out in conjunction with certain milestones.
As part of the deal, Century and Altius inked a royalty agreement, where Century will pay Altius a one to four percent sliding scale gross sales royalty with respect to iron ore produced from the projects.
Century has also agreed to incur exploration expenses on the projects totaling a minimum of $28.0 million, and to make certain share payments to Altius over a five-year period, following the closing date, contingent on resource definition milestones.
"We are delighted to have completed the acquisition of the four Altius iron ore properties in the Labrador Trough. I very much look forward to continuing our partnership with the professional team at Altius, a highly regarded Newfoundland and Labrador company, to develop the Projects to production," said Century president and CEO, Sandy Chim.
President and CEO of Altius, Brian Dalton, added: "Century has the ambition, skill and international business relationships required to rapidly define and develop resources from this extensive package of properties."
Since 2003, Altius has been prospecting for iron ore in western Labrador and is the largest exploration license holder in the province of Newfoundland and Labrador.
Collectively, these projects cover 1,647 kilometres and a major portion of the indicated iron formation inside the Newfoundland and Labrador portion of the Labrador Trough.
Meanwhile, Century Iron holds a full interest in the Sunny Lake project in Quebec, and a 51 percent interest in the Duncan Lake joint venture project, also in Quebec, with Augyva Mining Resources (CVE:AUV).
Century is also part of an option agreement with Champion Minerals (TSE:CHM) where it may earn up a 60 percent interest in the Attikamagen project, which is also in Quebec.