Century Iron Mines (TSE:FER) and WISCO International Resources Tuesday executed a definitive agreement that will govern the joint ventures to be formed between the two companies in Quebec.
WISCO International Resources, is a unit of Wuhan Iron & Steel, China's third-largest steel producer.
In late August, the company inked a preliminary joint venture deal that would see China's WISCO invest a total of $120 million in exchange for a 40 percent interest in each of Century's Duncan Lake, Attikamagen and Sunny Lake projects.
Tuesday, the companies agreed the joint venture deals concering Century's Attikamagen and Sunny Lake projects. Execution of the joint venture agreement for the Duncan Lake project remains subject to completion of WISCO Resources’ internal processes, Century said.
Century Iron's president and CEO, Sandy Chim, said: "The execution of these first initial joint venture agreements marks another milestone in a process that was initiated in January 2011.
"The past twelve months has seen Century initiate its relationship with WISCO Resources as its strategic partner, raise over $100 million in equity financing, list on the Toronto Stock Exchange and now conclude these initial two joint venture agreements as part of an additional $120 million in joint venture funding for Century’s projects.
"We look forward to continuing the exploration of the Duncan Lake, Attikamagen and Sunny Lake projects with WISCO Resources as our key strategic partner under the joint ventures."
Century Iron is an emerging iron ore exploration and development company, with iron ore assets located in Northern Quebec and Labrador.
The company has two key strategic partners in WISCO Resources and Minmetals Exploration & Development, both state-owned Chinese companies with financial and technical resources to assist the company with funding for the exploration and development of its iron ore projects.
Tueday afternoon, shares were flat at $1.92.