A northwestern Ontario mine project developer has struck a tentative financing deal with a venture capital firm to advance its proposed iron-ore mine and mill.
Rockex Mining announced Feb. 11 of the signing of a non-binding letter of intent with Diversified Innovative Marketing Enterprises ("DIME") to access $30 million for completion of a feasibility study and environmental assessment of its Lake St. Joseph Project and Eagle Island deposit, 100 kilometres northeast of Sioux Lookout.
The financing is subject to Rockex reaching certain milestones and both parties finishing a definitive agreement by April 11. It would pave the way for a second wave of financing of almost $3.8 billion to start construction of a mine and hot briquetted iron processing operation at a location near town.
In a news release, Rockex president-CEO Armando Plastino said the “favourable financing arrangements” provides good value for shareholders.
“Rockex continues to maintain that the current market conditions are an ideal opportunity to
advance the project through the final feasibility and regulatory phases. This model will
allow our management team to position the project for production in peak market conditions.”
Tammy Lehtinen, Rockex vice-president of corporate affairs, stated the project would generate economic development opportunities for all, especially Aboriginal communities.
“Rockex is highly committed to developing the Lake St. Joseph project in manner that encourages meaningful participation and that is protective of the environment and respectful socially and culturally."
