Petmin ups stake in North American iron-ore project
JSE-listed Petmin plans to raise its stake in North Atlantic Iron Corporation (NAIC) to 40% and then exchange its equity in NAIC for a similar stake in a related company that would be listed in Toronto and Johannesburg.
Petmin, which has steadily invested R210-million in NAIC since 2011, will invest a further $6-million in the emerging Canada-based merchant pig iron producer, following a positive pre-economic assessment.
NAIC, which showed an aftertax investment rate of return of up to 19.3%, aims to produce 810 000 t/y of merchant pig iron from iron-ore sands from its deposit in Goose Bay, Newfoundland, or 915 000 t/y using fines bought from iron-ore producers, for sale primarily in North America, with Europe as a secondary market.
The overall project capital expenditure has been estimated at $515-million for the fines case, while the operating expenditure has been estimated at $305/t of merchant pig iron, which would make NAIC one of the lowest-cost producers on a delivered basis in North America.
Petmin points out that NAIC’s competitors’ costs for merchant pig iron range from $375/t to $425/t.
Petmin, which has an option to acquire a further 9.9% interest in NAIC, also plans to exchange its 40% equity in the pig iron producer, valued at about R300-million, for a 40% stake in Muskrat Minerals Incorporated (MMI).
MMI is listed on the Canadian National Stock Exchange and currently holds 40% of Grand River Iron Sand, which would own 60% of NAIC once Petmin has made its final investment by the end of 2014.
Following the conclusion of the deal, MMI will list on a major Canadian stock exchange, along with a secondary listing on the JSE.
Petmin will distribute the MMI shares to Petmin shareholders through a special dividend with an estimated value of 50c a share.
The transaction will be completed once NAIC has sufficient capital to complete a $20-million bankable feasibility study.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















