CALGARY, Alberta, April 19, 2018 (GLOBE NEWSWIRE) -- New Millennium Iron Corp. (“NML” or the “Company”)
(TSX:NML) announced today that it has entered into binding agreements with the Sept-Îles Port Authority (“Port”) and Tacora
Resources Inc. (“Tacora”) under which a portion of the Company’s multi-user wharf capacity will be sold to Tacora in conjunction
with Tacora’s planned re-start of the Scully Mine located near the town of Wabush, Newfoundland and Labrador.
The agreements call for Tacora to purchase the rights to 6.5 million tonnes of the 15 million tonnes of annual
wharf capacity reserved by NML in a July 2012 contract with the Port, along with the associated rights and obligations, shipping
rates and other terms in the July 2012 contract.
Total consideration is comprised of $4 million payable to NML on the closing date and further payments to NML of
$0.10 per tonne shipped by Tacora through the Port facilities over a 20-year period following the close of the transaction.
The transaction is subject to Tacora completing its project financing activities now in progress and customary
conditions precedent being satisfied, including execution of other product handling agreements and obtaining necessary legal and
regulatory documentation. Upon confirmation that all conditions precedent are met, which must occur on or prior to August 30,
2018, NML and Tacora will have a 15 day period in which to complete the sale.
Other than the reduction in NML’s annual wharf capacity to 8.5 million tonnes, there will be no change to NML’s
existing arrangements with the Port regarding the rights and shipping rates related to the remaining reserved capacity.
The new multi-user wharf is part of the Pointe-Noire product handling and shipping terminal at
Sept-Îles.
About New Millennium
NML is a Canadian iron ore development company with an extensive property position in Canada’s principal iron
ore district, the Labrador Trough, straddling the Province of Newfoundland and Labrador and the Province of Québec, in the Menihek
Region around Schefferville, Québec. The Company’s project areas are connected via a well-established, heavy-haul rail
network to the Port of Sept-Îles, Québec.
Tata Steel Limited (“Tata Steel”), a global steel producer and industry leader, owns approximately 26.2% of the
Company and is the Company’s largest shareholder.
NML has a 4.32% interest in Tata Steel Minerals Canada Ltd. (“TSMC”), which is owner and operator of a direct
shipping ore (“DSO”) project near Schefferville. The DSO project produces and ships sinter fines. Subsidiaries of Tata Steel
and the Quebec Government’s financing arm, Investissement Québec, own the remainder of TSMC.
Beyond TSMC, the Company offers further development potential through a group of long-life taconite properties
capable of producing high quality pellets and pellet feed to service the requirements of steel makers with either blast furnace or
direct reduced iron making operations. Two of these deposits – LabMag and KéMag – were the subject of large-scale development
feasibility studies carried out by the Company and Tata Steel and published in March 2014.
With these feasibility study results as a foundation and seven taconite properties now explored to a NI 43-101
compliant resource, the Company optimized its taconite development strategy through the design of a smaller market entry initiative
called the NuTac Project, for which a NI 43-101 prefeasibility study was carried out and published in June 2016.
In the currently challenging market environment for new iron ore projects, NML has implemented cash conservation
measures, while protecting its mineral claims and iron ore development positioning.
For further information, please visit www.NMLiron.com, www.tatasteelcanada.com and www.tatasteel.com.
Forward-Looking Statements
This news release contains certain forward looking statements and forward looking information (collectively
referred to herein as “forward looking statements”) within the meaning of applicable Canadian securities laws. All statements other
than statements of present or historical fact are forward looking statements. Forward looking information is often, but not always,
identified by the use of words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may”, “projected”,
“sustain”, “continues”, “strategy”, “potential”, “projects”, “grow”, “take advantage”, “estimate”, “well positioned” or similar
words suggesting future outcomes. In particular, this news release contains forward looking statements relating to the
Meeting and the management information circular relating thereto. Although the Company believes that the expectations and
assumptions on which the forward looking statements are based are reasonable, undue reliance should not be placed on the forward
looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking
statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a number of assumptions, factors and risks.
Management has provided the above summary of risks and assumptions related to forward looking statements in this
news release in order to provide readers with a more comprehensive perspective on the Company’s future operations. The
Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward
looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements
will transpire or occur, or if any of them do so, what benefits the Company will derive from them. The forward looking statements
contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in
this news release are made as of the date of this news release and the Company does not undertake and is not obligated to publicly
update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable
securities laws.
Contact:
Ernest Dempsey
Chief Executive Officer
Tel: (514) 935-3204, X 349
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