Labrador Iron Mines Holdings (TSX: T.LIM, Stock Forum) Tuesday said it has entered into a framework arrangement with Tata Steel Minerals Canada, a subsidiary of Tata Steel, to establish a strategic relationship between the two companies, this according to a company news release.
The strategic relationship will include multi-part co-operation agreements in areas of logistics, property rationalization, and various ancillary mutual support and potential off-take arrangements.
Labrador Iron Mines will receive a cash injection of $30 million as part of this agreement.
Both Labrador Iron Mines Holdings and Tata Steel Minerals Canada operate adjacent direct shipping iron ore projects in Newfoundland and Labrador and in Quebec.