Rockex Mining said it’s sealed the deal with a venture capital firm to advance its Lake St. Joseph iron ore and milling project, near Sioux Lookout.
The Thunder Bay junior miner announced May 2 that it has signed a definitive agreement and financing deal with Diversified Innovative Marketing Enterprises (DIME) to fund the completion of a feasibility study, environmental assessment, along with the project’s development and production.
Last February, Rockex signed a non-binding letter of intent with DIME to access $30 million for completion of a feasibility study and environmental assessment of its Eagle Island deposit, 100 kilometres northeast of Sioux Lookout.
Subject to certain milestones being met, a second wave of financing of almost $3.8 billion is available to start construction of the mine and hot briquetted iron processing operation at a location near town.
In the agreement, Rockex has granted the venture capital firm the option to earn a 40 per cent interest in the Lake St. Joseph properties. DIME may also be granted an option to increase that 49 per cent.
"The completion of this funding arrangement will provide Rockex with the necessary financial resources to advance the Lake St. Joseph Project to the next phase,” said Rockex president-CEO Armando Plastino in a statement, who called the project the “largest undeveloped iron ore deposit” in Ontario.
“Rockex is eager to commence the feasibility study and environmental assessment, and we are very pleased to be forging a long term relationship with DIME Venture Capital."
Tony Beaton, DIME’s CEO said the project fits into his firm’s strategy to invest in iron ore and steel.
“Steel is integral to the global economy, and is the world's most commonly used metal. Iron ore is the key ingredient in the production of steel. The Lake St. Joseph Property has substantial upside potential, in that Rockex has the opportunity to extend the current estimated 30-year life of mine through continued development of the Eagle Island deposit and even more with further exploration of the Wolf and Fish Island deposits."