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Abaxx Technologies goes public and prepares to launch commodity futures exchange
https://www.bnnbloomberg.ca/video/abaxx-technologies-goes-public-and-prepares-to-launch-commodity-futures-exchange~2104326
Abaxx Technologies Goes Public on NEO Exchange
https://www.businesswire.com/news/home/20201218005454/en/Abaxx-Technologies-Goes-Public-on-NEO-Exchange
Abaxx Technologies Goes Public on NEO Exchange
https://www.businesswire.com/news/home/20201218005454/en/Abaxx-Technologies-Goes-Public-on-NEO-Exchange
Abaxx Technologies Announces Commencement of Trading on Canada's NEO Stock Exchange
TORONTO, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Abaxx Technologies Inc. ("Abaxx") is pleased to announce it has received final approval to list on the Neo Exchange Inc. (the "NEO") in Canada and will begin trading on December 18, 2020 under the symbol "ABXX". Abaxx successfully completed the previously announced reverse takeover with New Millennium Iron Corp. ("NML") on December 14, 2020 pursuant to the terms of a business combination agreement dated September 18, 2020. For more information, please refer to NML's press release dated December 11, 2020.
Abaxx will commence trading on the NEO Stock Exchange under the ticker symbol ABXX and will have 63,558,062 shares outstanding at the start of trading. A filing statement prepared in accordance with the policies of the NEO is available on SEDAR at www.sedar.com
About Abaxx Technologies
NWLNF: effective Dec. 15,2020: "The delisting results from the completion of the reverse take-over of the Company by the shareholders of Abaxx Technologies Inc. Each holder of a common share of the Company ("NML Share") will receive, in exchange for each twelve (12) NML Shares, one (1) common share of the Company which will be renamed "Abbax Technologies Inc."
https://otce.finra.org/otce/dailyList?viewType=Deletions
What's up with that reverse merge they're doing with Abaxx? Looks interesting.
Tata Steel could invest up to $400 million in Quebec over the next two years...
PRESSE CANADIENNE
http://montrealgazette.com/business/tata-steel-could-invest-up-to-400-million-in-quebec-over-the-next-two-years?__lsa=6f7b-ac31
DAVOS, Switzerland – Quebec received some good news for its Plan Nord on Wednesday in Davos when Tata Steel signed an agreement in principle with the Couillard government. The company could invest up to $400 million in the province within the next two years.
Despite depressed prices for iron ore, the company wants to speed up an iron ore mine project, also known as the DSO project at Schefferville in northern Quebec, where it has already invested over $1 billion.
This investment – the largest ever made by Tata Steel outside India – should also help to consolidate or maintain 300 jobs.
“It sends a signal of hope to the North Shore,” said Prime Minister Philippe Couillard in a press conference.
By March 31, the Quebec government will decide the extent of public money to be invested in the project to acquire a stake in it.
The announcement was made on the first day of the Economic Forum in Davos, Switzerland, at a press conference during which Couillard was accompanied by Economy Minister Jacques Daoust, as well as representatives of Tata Steel.
The two sides also agreed to facilitate transit activities of iron ore from Arnaud Junction, which Investissement Québec is trying to acquire, to the dock of the Port of Sept-Îles – a cornerstone of the Plan Nord.
The DSO site of Tata Steel produces between two and three tons of ore annually. If the project goes ahead, production could reach up to six million tonnes per year.
Tata Motors (TTMT) Ltd.’s Jaguar Land Rover aims to capture 10 percent of China’s premium SUV market as its first local plant allows the luxury marque to cut prices and boost sales in the world’s largest auto market.
JLR opened the 130,000-unit-a-year factory in Changshu city, about 110 kilometers (70 miles) northwest of Shanghai. The brand’s best-selling Range Rover Evoque will be its first local production model, according to Chief Executive Officer Ralf Speth. The carmaker plans to build three models in China by 2016, including a Jaguar, he said.
“It’s the biggest market on earth,” Speth told reporters at an event to inaugurate the plant. “Overall I’m quite optimistic that China will manage this growth.”
The unit expects to sell 120,000 cars this year in China, which is already its biggest market, according to Bob Grace, the Gaydon, England-based division’s China president. Tata Motors is the latest foreign automaker to set up factories in the country to avoid duties that make imported vehicles less competitive.
JLR has said it expects local production to help cut prices by 15 percent, which may assist in extending a lead over Fiat Chrysler Automobiles NV (FCA)’s SUV-centric Jeep brand and narrow a gap with Volkswagen AG’s Audi.
“Land Rover has a unique positioning in the market as premium car sales are booming, as are SUV sales,” said Yale Zhang, managing director of researcher Autoforesight Shanghai Co. “A lot of customers in China want to upgrade to premium cars. At the same time, there are enough premium sedans in China, so it won’t be easy for Jaguar.”
SUV Market
JLR will be competing in a market where demand for premium SUVs is forecast to double to 1.2 million units by 2020, with 18 brands competing for market share, according to IHS. In 2010, automakers sold 183,781 premium SUVs in China. JLR aims to capture 10 percent of the premium SUV market with the Land Rover brand, according to Grace.
The SUV market in China is dominated by Great Wall Motor Co. (2333)’s homegrown Haval line, Volkswagen’s Tiguan, and Japanese models such as Honda Motor Co. (7267)’s CR-V and Toyota Motor Corp. (7203)’s RAV4.
JLR’s sales in China climbed 39 percent to 66,505 vehicles in the first nine months of the year, according to company data. China’s total vehicle sales in September grew at the slowest pace in 19 months, dragged down by slumping demand for commercial vehicles.
Before the Changshu plant, all of the company’s vehicles sold in China were produced in the U.K. and imported, including the Land Rover Freelander, Range Rover, Range Rover Sport and Evoque, as well as the Jaguar XF, XJ and F-Type Jaguar. IHS predicts JLR will build the Freelander at the Changshu plant after the Evoque.
Antitrust Probe
The JLR factory opening comes after Chinese antitrust authorities pressured at least seven carmakers to cut prices in the wake of an investigation by China’s National Development and Reform Commission into how much foreign carmakers charge for vehicles and spare parts.
The government began looking into possible antitrust violations in the auto industry at the end of 2011 as state media accused manufacturers of inflating prices and overcharging consumers.
In July, JLR said it would cut prices on three imported models in China by an average of 200,000 yuan ($33,000) amid an industry investigation by the antitrust regulator.
The imported Evoque currently starts from 578,000 yuan, about the same as the Jeep Grand Cherokee and more expensive than a larger, locally produced Audi Q5 that retails from 358,500 yuan, according to the brands’ websites.
Jeep plans to start production in China in the fourth quarter of next year.
(An earlier version of this story was corrected to fix the spelling of SUV model.)
To contact Bloomberg News staff for this story: Siddharth Philip in Mumbai at sphilip3@bloomberg.net; Alexandra Ho in Shanghai at aho113@bloomberg.net
To contact the editors responsible for this story: Chua Kong Ho at kchua6@bloomberg.net Suresh Seshadri, Subramaniam Sharma
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http://www.bloomberg.com/news/2014-10-21/china-s-aggressive-electric-car-ambitions-to-boost-aluminum.html
New Millennium Announces Filing on SEDAR of the Technical Reports on the Results for the Taconite Project Feasibility Study
Date : 05/13/2014 @ 8:08AM
Source : Marketwired
Stock : New Millennium Iron Corp. (QX) (NWLNF)
Quote : 0.409 0.0 (0.00%) @ 8:38AM
New Millennium Announces Filing on SEDAR of the Technical Reports on the Results for the Taconite Project Feasibility Study
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New Millennium Announces Filing on SEDAR of the Technical Reports on the Results for the Taconite Project Feasibility Study
CALGARY, ALBERTA--(Marketwired - May 13, 2014) - New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML)(OTCQX:NWLNF) today announced the filing on SEDAR of the National Instrument 43-101 compliant technical reports ("Reports") stating the highlights of the Feasibility Study ('Study") results for each of the LabMag and KéMag projects, which are part of what is collectively referred as the Taconite Project (see news release 14-04 dated March 27, 2014). The effective date of the Reports is March 27th, 2014 and there are no material differences between the results announced in news release 14-04 and those contained in the Reports.
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited ("Tata Steel"), one of the largest steel producers in the world, have advanced a Direct Shipping Ore ("DSO") Project to the production stage, from which trial shipments have begun. Tata Steel owns approximately 26.2% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by Tata Steel Minerals Canada Limited ("TSMC"), which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 98.9 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.3% Fe, 6.7 million tonnes of Inferred Resources at an average grade of 56.7% Fe and about 20.0 - 25.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009, news release 10-12 dated July 8, 2010, news release 12-14, dated May 31, 2012 and news release 14-02 dated February 24, 2014). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
LabMag contains 3.9 billion tonnes of Proven and Probable reserves at a grade of 29.7% Fe plus 376 million tonnes of Measured and Indicated resources at an average grade of 29.6% Fe and 891.0 million tonnes of Inferred resources at an average grade of 29.3% Fe. KéMag contains 2.4 billion tonnes of Proven and Probable reserves at an average grade of 30.6% Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.7% Fe (See Tables 2, 3 & 4 in news release 14-04 dated March 27, 2014). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of development of either or both the LabMag and the KéMag deposits (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits. The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe (see news release NR 12-11, dated April 02, 2012).
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22%, and Inferred Resources of 795 million tonnes at an average grade of 30.56% (see news release NR 13-04, dated February 11, 2013).
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits, and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631 billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an average grade of 29.83% Fe (see news release NR 13-15, dated May 23, 2013).
The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com, www.tatasteel.com, www.tatasteelcanada.com, and www.tatasteeleurope.com.
Dean Journeaux, Eng., Moulaye Melainine, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
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 may contain forward looking statements relating to future opportunities, business strategies, mineral exploration, development and production plans and competitive advantages.
The forward looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimated results in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in the forward looking statements, including among other things: inability of the Corporation to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, including business competition, changes in government regulations or in tax laws; general political and social uncertainties; commodity prices; the actual results of exploration, development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Corporation; timing and availability of external financing on acceptable terms; conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations; and lack of qualified, skilled labour or loss of key individuals; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, along with the Corporation's annual information form, all of which are filed and available for review on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list is not exhaustive.
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 Corporation 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.
With respect to the disclosure of historical resources in this news release that are not currently in compliance with National Instrument 43-101, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
New Millennium Iron Corp.
Robert Patzelt
President & Chief Executive Officer
(709) 770-2635 or (514) 935-3204 ext. 370
New Millennium Iron Corp.
Ernest Dempsey
Vice-President, Investor Relations and Corporate Affairs
(514) 935-3204 ext. 349
New Millennium Iron Corp.
Andreas Curkovic
Investor Relations
(416) 577-9927
Announces Positive Results for the Taconite Project Feasibility Study
Date : 03/27/2014 @ 6:00AM
Source : Marketwired
Stock : New Millennium Iron Corp. (QX) (NWLNF)
Quote : 0.372 0.0 (0.00%) @ 9:58AM
New Millennium Iron Corp. Announces Positive Results for the Taconite Project Feasibility Study
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New Millennium Iron Corp. Announces Positive Results for the Taconite Project Feasibility Study
CALGARY, ALBERTA--(Marketwired - Mar 27, 2014) - New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML) (OTCQX:NWLNF) announced today the results of the techno-economic viability of the Taconite Project Feasibility Study ("the Study"), which was jointly undertaken by Tata Steel Limited ("Tata Steel") and NML, and financed by the parties on a 64% - 36% basis, respectively. Under the Taconite Project Heads of Agreement (the "HOA") dated March 6, 2011, Tata Steel retains the option to participate in the development in due course, of one or both of the LabMag, and KéMag deposits. The Study consists of three separate scenarios, one for the development of KéMag deposit (100% owned by NML), one for LabMag deposit (80% owned by NML and 20% owned by the Naskapi Nation of Kawawachikamach) and the third which combines the development of the LabMag and KéMag deposits simultaneously. The Study covering all the three scenarios is collectively referred to as the Taconite Project ("TP"). Only the LabMag and KéMag deposits will be included in the NI 43-101 Technical Report. The choice of scenario to be developed will be made at the time of the investment decision. The Study Manager is a well-known international consulting firm and, in preparing the Study, was supported by a number of consultants specialized in their respective fields. The Capex and Opex details from the Study have been used by the Corporation to compile the financial summary as noted in Table 1 below. Infrastructure related items in the mine, ferroduct and port are proposed to be owned by third parties and leased to the Project. A reputed international accounting firm was engaged to review the financial model. In preparation for publication of the highlights of the Study, NML has engaged Met-Chem Canada Inc., Montreal, Quebec, to compile a National Instrument 43-101 compliant Technical Report for each of the LabMag and KéMag projects, which is required to be filed on SEDAR within 45 days of publication of this news release.
Project Highlights:
The following table summarizes the financial results for two standalone cases, LabMag and KéMag.
Table 1 (in CDN $millions unless otherwise noted)
LabMag KéMag
Capex - Mine & Process 1 5,012 5,227
Capex - Infrastructure 2 2,737 3,012
Production cost per tonne of concentrate $ 43.03 $ 42.55
Production cost per tonne of pellet 3 $ 52.22 $ 51.59
Finance Lease for Infrastructure Cost per tonne of product 4 $ 12.50 $ 14.17
Project IRR (before tax, 100% equity) 18.2 % 17.5 %
Project IRR (after tax, 100% equity) 14.1 % 13.2 %
IRR on equity (before tax, 30%-70% equity debt ratio) 28.8 % 28.0 %
IRR on equity (after tax, 30%-70% equity debt ratio) 23.3 % 21.9 %
Payback before tax at 100% equity (years after production start) 4.9 4.9
Payback after tax at 100% equity (years after production start) 5.6 5.7
Payback before tax at 30%-70% equity debt ratio (years after production start) 3.3 3.3
Payback after tax at 30%-70% equity debt ratio (years after production start) 3.5 3.5
NPV @ 8% before tax (100% equity) 5,838 5,262
NPV @ 8% after tax (100% equity) 2,849 2,241
NPV @ 8% before tax(30% equity) 5,977 5,397
NPV @8% after tax (30% equity) 3,303 2,697
Proven+Probable Reserves (million tonnes)5 3,410 1,891
Mine life (estimated years based on total low silica reserves)6 39 22
(1) Costs of major mining equipment and power transmission line are not included in capex, but servicing costs are in the cash cost
(2) Consists of slurry transportation ferroduct and product storage and reclaiming system are to be financed on the basis of long term debt
(3) Average cash costs per tonne based on a total production of 23 million tonnes of pellets and pellet feed. Conversion cost of pellets is estimated at $11.12/t.
(4) Cost of servicing the annuity assumed at 7% interest for 25 years
(5) Does not include 523 and 493 million tonnes of proven and probable reserves in LabMag and KéMag respectively due to higher silica content at a cut-off of 4%
(6) Mine life increases to 42 years and 25 years for LabMag and KéMag respectively if additional reserves are included and if mined concurrently or in succession, to a combined life of 61 years
Project Assumptions:
Production of 22 million metric tonnes per year ("Mtpy") of concentrate to produce 17.0 Mtpy of pellets and 6.0 Mtpy of pellet feed. (Actual total is estimated to be 23 Mtpy due to weight gain during the pelletizing process).
Pellet production consists of 12 Mtpy of low silica (2.5% SiO2) blast furnace ("BF") grade fluxed pellets and 5 Mtpy of direct reduction ("DR") grade pellets with 1.8% SiO2.
6 Mtpy of pellet feed containing > 69.0% Fe and 2.2% SiO2.
Product prices are based on a long term price forecast of US$103 for 62% Fe fines CFR North Chinese ports. This forecast was developed by World Steel Dynamics, Englewood Cliffs, New Jersey, USA, marketing consultant for the Study.
After adjustment for ocean freight and quality factors, the assumed product prices loaded into ship at the Port are as follows: Pellet Feed US$90.00 per tonne ("t"), BF grade Pellets US$116.61/t and DR grade Pellets US$126.86/t.
Exchange rates used for the cost estimates and revenues in the financial evaluation are US$0.90 and EUR 0.71 per CAD$1.00.
Project economics presented are based on a 25 year mine plan for LabMag and 22 years for KéMag.
Accuracy of cost estimates is considered to be ±15%.
Implementation Plan
The shared conclusion is that the Study demonstrates Project viability and the parties are now proceeding with addressing key parameters on a timely basis that are expected to lead to an investment decision by Tata Steel which include, working with governments on selection of an appropriate scenario; completion of environmental assessment work; reviewing refined process and models that would permit a ramp up of production, improve operating expenditures and reduced initial capital costs; and update robust financial modelling that would result in making the Project investor and lender ready.
Robert Patzelt, President and CEO of NML said, "We are very pleased with the results of this joint study with our strategic partner, Tata Steel which is amongst the largest steelmakers in the world. We believe the results present a compelling case for a profitable, successful, long-term iron ore operation. We have always believed that New Millennium has the best ore bodies in the Labrador Trough. The favourable geological and mining characteristics of the deposits are manifested in the study's operating cost estimates, which would place our Taconite Project among the low cost pellet producers. We also want to emphasize that the project would produce premium products whose supply and demand balance over the next decade is estimated to be the best for all iron ore products. It also demands emphasis that we have been very fortunate in having support and technical expertise of Tata Steel. We will continue to work with governments at all levels, First Nations, suppliers, contractors and other stakeholders to advance the project to the next stage of development."
Project Descriptions:
General: The Study demonstrates that each of the two project scenario has the potential to become a significant new source of high quality pellets to serve the global steel industry. Each project scenario is based on primary processing consisting of mining and concentrating at the mine site, a slurry transportation system ("Ferroduct") to the secondary processing consisting of a pellet plant and product storage and reclaiming for transport to the terminal. Products will be shipped through a multi-user deep water dock.
LabMag and KéMag both feature Taconite ore similar to the ore currently being mined in the Mesabi Iron Range (MIR) in Minnesota, USA. The MIR Taconites have been a mainstay for the US steel industry since the early 1950s. The processing is based on well-proven and established flowsheet designs employed by the current producers. The Project will be competitive, aiming for a favourable position on the global cost curve for pellet producers. Natural advantages include a low stripping ratio and magnetite ore, which reduces energy costs in the pelletizing process. The Project's cost structure will also benefit from the use of large-scale and proven state of the art equipment. The concentrate will be transported from the mine through the ferroduct to the pellet plant. This is the most economical and environmentally friendly mode of transportation to the port, and will enable implementation of the Project independent of other users. The pellet plant will utilize the largest size equipment currently in operation. Shipping will be through a deep water dock capable of handling today's large-size vessels.
Geology & Mining: The Project's mining operation will have a total mining rate of up to a nominal 86 Mtpy of crude ore at an average Davis Tube ("DT") Weight Recovery ("WR") of between 25 to 27%. Mining will include all facilities for pre-strip, waste rock and low grade ore stockpiling, ore delivery and mine rehabilitation. Mine plans have been considered for each of the three scenarios, viz. LabMag, KéMag and Combined scenario. The deposits are ideal for open pit mining with low strip ratio and conventional truck and shovel mining methods have been selected. Due to the high tonnages expected to be mined, the trucks and shovels will be the largest and proven equipment available on the market. For each scenario, an optimized pit was determined using the 3D Lerchs-Grossman algorithm and a separate set of cut-off grades were established in order to ensure the feed ore would consist of better liberating ores that would allow for producing lower-silica products.
The Mineral Reserves are the portion of the Measured and Indicated Mineral Resources (refer to Table 2 below) that have been identified as being economically extractable, which incorporate mining losses and the addition of waste dilution. The total reserve base for the LabMag and KéMag deposits are shown respectively in Table 3 and Table 4 below.
Table 2: LabMag & KéMag Resources (Met-Chem 2013 models)
Block Resource by category Million Tonnes DTWR % Head Davis Tube Concentrate
(18% DTWR cut-off) %Fe %Fe %SiO2
LabMag Measured 3,689 26.18 29.81 69.93 2.10
Indicated 632 25.03 29.24 70.08 2.00
Measured + Indicated 4,321 26.01 29.73 69.96 2.09
Inferred 1,063 25.22 29.64 69.88 1.85
KéMag Measured 1,507 26.97 31.45 69.69 2.56
Indicated 876 27.32 31.95 69.83 2.51
Measured + Indicated 2,383 27.10 31.63 69.74 2.54
Inferred 1,007 26.97 31.56 69.31 2.65
Total Measured 5,196 26.41 30.29 69.86 2.23
Indicated 1,508 26.36 30.81 69.93 2.30
Measured + Indicated 6,704 26.40 30.41 69.88 2.25
Inferred 2,070 26.07 30.57 69.60 2.24
Table-3: LabMag Mineral Reserves
Category Tonnage
(Mt) DTWR
(%) Crude Fe
(%) Davis Tube Concentrate
Fe (%) SiO2(%)
Proven 2,885 27.1 29.9 69.9 2.1
Probable 525 26.2 29.3 70.0 2.0
Proven & Probable 3,410 27.0 29.8 69.9 2.1
Note: Does not include 523 Mt of proven and probable reserves having higher silica content at a cut off of 4%.
Table-4: KéMag Mineral Reserves
Category Tonnage
(Mt) DTWR
(%) Crude Fe
(%) Davis Tube Concentrate
Fe (%) SiO2(%)
Proven 1,172 27.0 31.2 69.8 2.2
Probable 718 27.9 31.4 70.1 2.1
Proven & Probable 1,891 27.0 31.3 69.9 2.2
Note: Does not include 493 Mt of proven and probable reserves having higher silica content at a cut off of 4%.
Processing: The plant design will be the same whether the ore is mined from LabMag or KéMag because similar blending criteria will be used to achieve the same liberation index (DT concentrate silica) in the plant feed. The only differences would be related to terrain topography and infrastructure which will be specific to the chosen site. The processing facility is designed with the capacity to produce 22 Mtpy of magnetite concentrate. The process plant involves multiple crushing and grinding stages followed by a conventional magnetite recovery circuit with a flotation plant to further reduce the silica in the concentrate to produce a high grade pellet feed for the pellet plant and the remainder to be sold as a concentrate. Traditional taconite concentrators utilize a primary crusher followed by an autogenous or semi-autogenous grinding mill (SAG) to reduce the size of the crushed ore before feeding to the magnetic separation circuit. Based on the results of extensive testing conducted since 2007, the SAG mill will be replaced with a second stage of crushing followed by high pressure grinding rolls (HPGR), which have been utilized in a similar manner in several iron ore projects around the world. HPGR requires much lower energy and has lower operating costs than the SAG process. Fine grinding in a ball mill, as used in traditional concentrators, will be required to produce a concentrate for the floatation circuit.
Slurry transportation: The fine grained concentrate, which is ideal for slurry transport will be pumped from the mine site to the port through a 28" (711mm) diameter and 600+ km long ferroduct with a single intermediate pumping station. KéMag and LabMag Projects will have separate routings. It will have the necessary tools for leak detection, repair equipment and emergency back-up power. The ferroduct design slopes will be limited (<10%) to avoid plugs in valleys even if the ferroduct is shut down full of slurry. Although the line will be buried almost its entire length, where it is not possible to bury the ferroduct, an appropriate thickness of insulation and heat tracing will be provided to prevent freezing. Ferroducts are used in iron ore projects in Tasmania, Mexico, Brazil, India and China. One such system is operating in Baotou, Inner Mongolia, with ambient temperatures as low as -41 degrees C. Ferroducts are cost effective, ecofriendly and known to be extremely reliable.
Pelletizing: Concentrate slurry will be dewatered and filtered. Filtered concentrate will either be sold as pellet feed or pelletized in two 8.5 Mtpy capacity machines. These are the largest size pelletizing equipment currently in operation. It is estimated that 16 Mtpy of magnetic concentrate will be required to produce 17 Mtpy of pellets because of the weight gain due to flux additives and to the exothermic reaction during the conversion of the magnetite into hematite. Magnetite ore has lower pelletizing costs compared to hematite because of lower energy requirements. Beginning in 2006, extensive tests were undertaken to develop the design basis for the pelletizing circuit. The final equipment configuration was tested at a leading vendor's laboratory and the equipment has been designed to meet the throughput requirements and product quality specifications for seaborne pellets.
Product Stockpiling and Shipping: Concentrate and screened pellets will be stockpiled in a yard adjacent to the pellet plant at the port. Products will be reclaimed and sent via a 7.6 km long overland conveyor to the multi-user deep water dock. The port will be capable of loading ocean going vessels with a current maximum capacity of 350,000 DWT. The rated capacity of the dock is 50 Mtpy and $38.4 million has been invested by NML to reserve 15 Mtpy of this capacity (refer to NR 12-17 dated July 18, 2012).
Environmental Assessment: The Project is expected to trigger several regimes of environmental assessment ("EA"). Discussions with the applicable governments have been held and it is concluded that a single environmental impact statement ("EIS") covering all the components of the Project may be submitted. The Project Description is a document that activates the various EA regimes and is currently complete. Much of the baseline data on the Taconite Project has been collected and has since been analyzed and reports completed. Intensive field work to collect biophysical baseline data were conducted in fall 2011 and spring-fall 2012. The data is currently being analyzed, and most of the field reports have been reviewed and approved.
Financial Analysis, Revenues and Sensitivity Analysis: Iron ore prices are based on a long-term projection of daily spot market prices, as quoted by an index, CFR Northern Chinese port for 62% Fe sinter fine products. Based on the supply demand analysis over different steel cycles, World Steel Dynamics of New Jersey, a noted steel industry analyst, has projected a long-term base line price of US$103.00 for 62% Fe grade CFR China. With appropriate quality adjustments and allowing for the freight from the port to China, the revenue assumptions are based on prices of US$90.00 per tonne of 69.0% Fe grade pellet feed Applying a US$30 spread between fines and BF grade pellets over the cycle and adjusting for 66.4% Fe grade in the pellet, the price of the BF grade fluxed pellet is estimated to be US$116.61 per tonne. Based on a 7% over the cycle premium for DR grade pellets compared to BF grades and adjusting for a Fe content of 67.9%, the price for DR grade pellets would be US$126.86. Long term exchange rate of US$0.90 equivalent to CAD$1.00 has been assumed for the Study.
The project economics presented are based on the first 25 year mine plan for the LabMag and Combined Projects, and 22 years for the KéMag Project, and consider mining only the proven and probable reserves (NI 43-101 compliant) with the required liberation characteristics (DTC silica 2.1%).
The Project financials have been evaluated with capital expenses excluding certain infrastructure-related capital expenses in the mine, port and ferroduct, which are identified and proposed to be owned by third parties and serviced on the basis of long-term lease. The evaluation is based on two separate cases: one with 100% equity and the other one with 30% -70% equity ratios. The debt is assumed to be financed at an interest rate of 7%.
The sensitivity analysis with respect to sales revenue, capital costs and operating costs for the LabMag Project is illustrated in Figure 1. The figures are based on 100% equity.
To view the graph associated with this release, click the following link: http://media3.marketwire.com/docs/935744_c.jpg
Technical Report by Met-Chem Canada Inc.:
An NI 43-101 Technical Report ("Report") is being prepared by Met-Chem Canada Inc. ("Met-Chem") will be posted on www.sedar.com within 45 days of this news release. Met-Chem is working on the Report in collaboration with the Study Manager and other supporting Consultants with their own Independent Qualified Persons. Met-Chem is a firm of experienced mining and metallurgical engineering professionals with expertise in exploration, mining evaluations, processing and the preparation of mineral resource/reserve estimates, especially in relation to iron ore. The Report will include updated mineral resource and reserve estimates which were prepared respectively by Mr. Schadrac Ibrango, P.Geo., PhD. and Mr. Jeffrey Cassoff, Eng. of Met-Chem. Both Mr. Ibrango and Mr. Cassoff are Independent Qualified Persons as defined by NI 43-101. The Report will consist of summary results from the Study. The Report is being prepared under the overall direction of Mr. Charles Cauchon Eng. of Met-Chem and will be reviewed and certified by individuals who are responsible for their respective portions of the Report. Mr. Cauchon and all other individuals providing certifications are Independent Qualified Persons as defined by NI 43-101. The financial analysis will be reviewed and certified by an Independent Qualified Person.
About New Millennium.
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited ("Tata Steel"), one of the largest steel producers in the world, have advanced a Direct Shipping Ore ("DSO") Project to the production stage, from which trial shipments have begun. Tata Steel owns approximately 26.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by Tata Steel Minerals Canada Limited ("TSMC"), which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 98.8 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.3% Fe, 6.7 million tonnes of Inferred Resources at an average grade of 56.3% Fe and about 20.0 - 25.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009, news release 10-12 dated July 8, 2010, news release 12-14, dated May 31, 2012 and news release 14-02 dated February 24, 2014). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
LabMag contains 3.9 billion tonnes of Proven and Probable reserves at a grade of 29.7% Fe plus 376 million tonnes of Measured and Indicated resources at an average grade of 29.6% Fe and 891.0 million tonnes of Inferred resources at an average grade of 29.3% Fe. KéMag contains 2.4 billion tonnes of Proven and Probable reserves at an average grade of 30.6% Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.7% Fe (See Tables 2, 3 & 4 in news release 14-04 dated March 27, 2014). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of development of either or both the LabMag and the KéMag deposits (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits. The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe (see news release NR 12-11, dated April 02, 2012).
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22%, and Inferred Resources of 795 million tonnes at an average grade of 30.56% (see news release NR 13-04, dated February 11, 2013).
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits, and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631 billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an average grade of 29.83% Fe (see news release NR 13-15, dated May 23, 2013).
The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com, www.tatasteel.com, www.tatasteelcanada.com, and www.tatasteeleurope.com.
Dean Journeaux, Eng., Moulaye Melainine, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
New Millennium Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2013
Date : 03/25/2014 @ 5:29PM
Source : Marketwired
Stock : New Millennium Iron Corp. (QX) (NWLNF)
Quote : 0.372 0.0 (0.00%) @ 5:00PM
New Millennium Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2013
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New Millennium Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2013
CALGARY, ALBERTA--(Marketwired - Mar 25, 2014) - New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML)(OTCQX:NWLNF) announced today its financial results for the fourth quarter and year ended December 31, 2013.
The following review of the Company's financial performance is based on the audited Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2013, which have been filed on the SEDAR website at www.sedar.com. The Financial Statements have been prepared in accordance with International Financial Reporting Standards.
Progress continued in the fourth quarter and year in NML's three principal areas of activity, two of which involve projects being carried out with strategic partner and shareholder Tata Steel Limited ("Tata Steel"). In addition, there were important changes at the senior executive and Board of Directors levels.
The Direct Shipping Ore Project ("DSO Project") through a 20% ownership interest in Tata Steel Minerals Canada Limited ("TSMC") owner and operator of the Project: (1) Advancement on construction of the processing plant and ancillary facilities; (2) continuing production of saleable, crushed and screened ore; (3) marketing agreement with Iron Ore Company of Canada and commencement of sales; (4) joint venture agreement with Labrador Iron Mines Holdings Limited on the Howse Deposit; (5) receipt of Quebec Certificate of Authorization for the Goodwood and Sunny 1 properties; (6) Cooperation Agreement with NunatuKavut Community Council; and subsequent to the year-end, positive results from the 2012 drilling program.
On NML's Taconite Project, feasibility level work involving numerous design, engineering, technical and costing activities under a binding Heads-of-Agreement with Tata Steel advanced on the large LabMag and KéMag deposits: (1) Extension of study period into 2013 and 2014 for detailed review with Study Manager and consultants; (2) engagement of Met-Chem Canada Ltd. to compile a National Instrument 43-101 Technical report on the feasibility study; and (3) expert review of NML's financial models and assumptions.
In NML's third principal area of activity, there were further results from exploration drilling continued at other Millennium Iron Range taconite properties that are controlled by NML and which represent potential opportunities for additional strategic partnerships: Extensive NI 43-101 compliant resource estimates for Sheps Lake, Perault Lake, Howells River North and Howells Lake properties and filing of the related Technical Reports.
At the general NML corporate level: (1) The appointment of Mr. Robert Patzelt as President and Chief Executive Officer and Director of the Corporation; (2) the appointment of Mr. Dean Journeaux as Executive Vice Chairman; (3) the resignations of Mr. Hemant Nerurkar and Mr. Partha Sengupta from the Board of Directors and successor appointments of Mr. Koushik Chatterjee and Mr. Dibyendu Bose, respectively; the appointment of Ms. Cathy Bennett to the Board of Directors and subsequent resignation of Ms. Bennett; (4) conduct of a normal course issuer bid through the facilities of the TSX; and (5) commencement of trading of NML's common shares in the United States on the OTCQX International.
Other general activities of significance for NML during 2013 included: (1) Suspension of a feasibility study by Canadian National Railway Co. of new rail and terminal facilities to service the Labrador Trough, in which NML was a participant, and NML's re-confirmation of commitment to transportation of slurry concentrate through a ferroduct system for the Taconite Project; and (2) second and last investment instalment in the Sept-Îles Port Authority's new, deep water multi-user dock now under construction.
The Corporation's net loss for the three months ended December 31, 2013, is $1,609,000 ($0.01 per share) compared to a net loss of $2,187,000 ($0.01 per share) for the comparative period in 2012. The most significant item in comparing the 2013 fourth quarter's net loss to the loss in the prior year's comparative period is a decrease in general and administrative expenses from $2,572,000 to $1,761,000. Partially offsetting this decrease in expenses is a decrease in service fee revenue to $32,000 in Q4 2013 from $155,000 in Q4 2012 and a decrease in investment income to $120,000 in Q4 2013 from $229,000 in Q4 2012. The most significant item affecting general and administrative expenses was a decrease in share-based compensation to $769,000 in Q4 2013 for which the corresponding expense in Q4 2012 was $1,272,000. The decrease in investment income is due to lower levels of investments held during Q4 2013 versus Q4 2012. The service fee revenue decreased as TSMC is utilizing less of NML's resources as they continue to build up their own team.
NML's working capital at December 31, 2013 is $35,291,000, a decrease of $27,748,000 from the December 31, 2012 total of $63,039,000.
The Corporation's net loss for the year ended December 31, 2013, was $7,721,000 ($0.04 per share) compared to a net loss of $9,062,000 ($0.05 per share) for the 2012 fiscal year. This loss includes service fee revenue of $235,000 (2012 - $741,000), operating expenses of $8,642,000 (2012 - $10,903,000), net of investment and other income of $686,000 (2012 - $1,100,000). The decrease in the year's operating expenses are mainly due to the following: a decrease in share-based compensation expense from $5,115,000 in 2012 to $4,063,000 in 2013; a decrease in general and administrative expenses from $2,978,000 in 2012 to $2,560,000 in 2013; and a decrease in service fee expenses from $465,000 in 2012 to $125,000 in 2013.
As at December 31, 2013, the Corporation's mineral exploration and evaluation assets increased to $61,138,000 from $54,141,000 as of December 31, 2012, or by $6,997,000. The components of mineral exploration and evaluation assets at December 31, 2013, are: mineral licenses $2,966,000, drilling $35,352,000, resource evaluation $37,182,000, environmental $18,100,000, and amortization of property and equipment $124,000. These expenditures are partially offset by tax credits and mining duties of $13,499,000 and the Tata Steel payments of $19,087,000.
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited ("Tata Steel"), one of the largest steel producers in the world, have advanced a Direct Shipping Ore ("DSO") Project to the production stage, from which trial shipments have begun. Tata Steel owns approximately 26.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by Tata Steel Minerals Canada Limited ("TSMC"), which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 98.9 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.3% Fe, 6.7 million tonnes of Inferred Resources at an average grade of 56.7% Fe and about 25.0 - 30.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009, news release 10-12 dated July 8, 2010, news release 12-14 dated May 31, 2012, and news release 14-02 dated February 24, 2014). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13 dated July 5, 2006 and news release 07-11 dated July 17, 2007); KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated January 16, 2009). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits.
The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe (see news release NR 12-11, dated April 02, 2012).
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22%, and Inferred Resources of 795 million tonnes at an average grade of 30.56% (see news release NR 13-04, dated February 11, 2013).
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits, and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631 billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an average grade of 29.83% Fe (see news release NR 13-15, dated May 23, 2013).
The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com, www.tatasteel.com, www.tatasteelcanada.com, and www.tatasteeleurope.com.
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
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 may contain forward looking statements relating to future opportunities, business strategies, mineral exploration, development and production plans and competitive advantages.
The forward looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimated results in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in the forward looking statements, including among other things: inability of the Corporation to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, including business competition, changes in government regulations or in tax laws; general political and social uncertainties; commodity prices; the actual results of exploration, development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Corporation; timing and availability of external financing on acceptable terms; conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations; and lack of qualified, skilled labour or loss of key individuals; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, along with the Corporation's annual information form, all of which are filed and available for review on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list is not exhaustive.
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 Corporation 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.
With respect to the disclosure of historical resources in this news release that are not currently in compliance with National Instrument 43-101, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
New Millennium Iron Corp.
Robert Patzelt
President & Chief Executive Officer
(709) 770-2635 (514) 935-3204 ext. 370
New Millennium Iron Corp.
Ernest Dempsey
Vice-President, Investor Relations and Corporate Affairs
(514) 935-3204 ext. 349
New Millennium Iron Corp.
Andreas Curkovic
Investor Relations
(416) 577-9927
www.NMLiron.com
New Millennium Iron Corp. Reports 23.45% Increase in DSO Project Indicated Resource Estimate
Date : 02/24/2014 @ 6:00AM
Source : Marketwired
Stock : New Millennium Iron Corp. (QX) (NWLNF)
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New Millennium Iron Corp. Reports 23.45% Increase in DSO Project Indicated Resource Estimate
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New Millennium Iron Corp. Reports 23.45% Increase in DSO Project Indicated Resource Estimate
CALGARY, ALBERTA--(Marketwired - Feb 24, 2014) - New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML)(OTCQX:NWLNF) announced today the results of the 2012 drill program conducted on the DSO Project by Tata Steel Minerals Canada Ltd. ("TSMC"), a joint venture between NML and Tata Steel owned 20% by NML. Three deposits were drilled in Area 4: Kivivic 1C, Kivivic 2 and Kivivic 5 (Figure 1.) The drilling consisted of 28 exploration and definition holes for a total of 1,387.3 meters resulting in a 23.45% increase in the Indicated resource estimate compared to the most recent resource estimate published in 2012 (NR 12-14). The gravity anomaly drilled is one of the 13 strong gravity anomalies outlined by the 2010 Airborne Magnetometer and Gravity survey (NR11-03) and the follow up ground gravity survey (NR12-12).
Robert Patzelt, President and CEO of NML, said: "This addition to the growing resource base is very welcome news. The increase of NI 43-101 compliant Indicated resources gives TSMC the option to potentially increase mine life or consider a higher production rate. We are pleased to note that the potential exists to discover additional DSO resources, which could add to the current certified resources. We will be concentrating in the vicinity of the plant location because new discoveries in that area would be beneficial due to shorter haulage distances. It is encouraging that TSMC has identified high priority targets that will be further investigated."
2012 Area 4 Deposit Drilling
In-fill drilling was carried out in deposits Kivivic 1C, Kivivic 2 and Kivivic 5 in 2012. The objective is to fully define the structure and the ore extent and grade of all three ore bodies. During the program, 28 holes for a total of 1,387.3 meters were drilled. All the samples collected were processed at the site facility and the required amounts were sent to Accurassay Laboratory, Thunder Bay, Ontario for final chemical analysis. Table 1 below summarizes the 2012 program.
Table 1
Area Deposit No. of Holes Total Meters Total Samples
4 Kivivic 1C 11 756.0 247
4 Kivivic 2 11 411.7 135
4 Kivivic 5 6 219.6 72
Total 28 1,387.3 454
Table 2 below provides the overall grade of the 3 deposits based on the entire drilling done to date. Kivivic 1C, Kivivic 2 and Kivivic 5 average 59.36%, 60.28% and 60.17% Fe with SiO2 values at 7.50%, 10.25% and 10.35%, respectively (Appendix 1, Table 7). Table 2 below also provides the average grade of each of the deposits on a yearly basis.
Table 2
Deposit Year Meters in Ore Fe% SiO2% Al2O3% Mn% P% LOI%
Kivivic 1C 2011 291.99 60.90 6.06 0.551 0.04 0.031 6.67
2012 243.83 57.51 9.23 0.755 0.04 0.062 5.34
Average 59.36 7.50 0.644 0.04 0.045 6.06
Kivivic 2 2011 534.8 60.21 9.82 0.954 0.37 0.016 2.30
2012 286.51 60.41 11.04 0.673 0.06 0.009 1.61
Average 60.28 10.25 0.856 0.262 0.014 2.06
Kivivic 5 2008 247.0 61.48 8.49 0.280 0.091 0.014 1.72
2011 259.2 58.34 12.49 0.981 0.43 0.022 2.56
2012 128.02 61.36 9.61 0.382 0.031 0.005 2.03
Average 60.17 10.35 0.587 0.217 0.015 2.13
Summary of Mineral Resource Estimate:
The primary objective of the drilling program was to convert Inferred and historical resources to NI 43-101 compliant Indicated and Measured resources. A summary of the Mineral Resource estimate, based on the additional 2012 drilling, is reported in Table 3. The most recent Resource Estimate is contained in Table 2 of NR 12-14, dated May 31, 2012. The new estimate consists of approximately 98.9 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.3% Fe on a dry basis plus an additional 6.7 million tonnes of Inferred Mineral Resources at 56.7% Fe.
Table 3
Summary of Updated Resource Estimate based on 2012 Drilling
(Using cut-off grades of Fe = Greater than 50%, SiO2 Less than 18% and Mn Less than 3.5%)
Resource
Classification Tonnes (millions)
2011 Drilling Tonnes (millions)
2012 Drilling %
increase %
Fe %
SiO2 %
MnO
Measured 26.5 26.5 0% 59.6 6.3 0.13
Indicated 58.6 72.4 23.5% 59.2 9.3 0.40
Total M+I 85.1 98.9 16.2% 59.3 8.5 0.33
Inferred 10.3 6.7 -34.9% 56.7 10.5 0.82
Mineral resources that are not mineral reserves have not yet been demonstrated as economically viable to mine. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.
Resource Modeling, Kivivic 1C, Kivivic 2 and Kivivic 5
Resource models for these deposits were completed by NML. Table 4 provides the estimated resources for each deposit. All these deposits required additional drilling to upgrade and expand the resource base. Figures 2 to 7 in Appendix 2 show the surface extent of the deposits with holes drilled to date and the typical sections from each of the deposits.
Table 4
Summary of Resource Estimate based on 2012 drilling
(Using cut-off grades of Fe = Greater than 50%, SiO2 Less than 18% and Mn Less than 3.5%)
Deposit Classification K tonnes Fe% SiO2% MnO%
Kivivic 1C Indicated 6,682 59.98 7.25 0.05
Kivivic 2 Indicated 13,380 61.09 9.77 0.25
Kivivic 5 Indicated 8,751 60.34 10.55 0.12
Total 28,813 60.60 9.42 0.16
Resource Estimation Methodology
The resource estimation of the Kivivic 1C, Kivivic 2 and Kivivic 5 was done using the same 3D block modeling methodology as previous estimates, where the grades in each block are estimated by interpolation of the surrounding drill hole composites. First, 3D mineralized envelopes are developed delineating potentially mineralized rock. They were created from geological interpretation made on 2D vertical sections from the drill hole information. Next, a 3D block grid is created and covers the extent of the mineralized envelope created above. Each block is interpolated using the Inverse Distance Weighting (IDW) interpolation method. The grades for each lithology are interpolated using only the composites belonging to that lithology. The historical bulk density value of 3.0 was used to convert volumes into in-situ tonnes. With the additional 2012 drilling, there is now sufficient confidence in the resources to classify them as indicated. The classified mineral resources are the accumulation of the individual blocks inside the mineralized rock types and inside each classification zone. Only the blocks having a Fe grade above 50%, a SiO2 grade below 18% and a MnO grade below 4.5% (Mn<3.5) are considered to be mineralized for the purposes of the mineral resource estimates. NML established the estimate of additional Mineral Resources internally which was reviewed by Qualified Persons (as defined by National Instrument 43-101) who have experience with the DSO Project and relevant expertise.
Results of 2012 Gravity Anomaly Drilling, Timmins Plant Area
The 2010 Airborne Magnetometer and Gravity survey outlined 50 strong gravity anomalies with coinciding weak magnetic anomalies within the properties held by TSMC in QC and NL. The ground gravity survey carried out in the fall of 2011 and the summer of 2012, by Géosig Ltée of Québec, was to validate the locations of the airborne gravity anomalies on the ground. Table 5 provides the details of this survey. One gravity anomaly area, approximately 300 meters northwest of Timmins DSO plant site was explored by drilling 7 test holes for a total of 216.4 meters (Figure 1). Seventy two (72) samples were collected and sent to Accurassay Laboratory in Thunder Bay, Ontario, for analysis. The assay results indicate that the iron formation is leached and enriched with a potential for the presence of a DSO deposit. Table 6 gives details of the 2012 drilling with holes intersecting leached and enriched material. This area needs to be fully explored by drilling. Table 5 shows the details of the ground gravity survey conducted in 2012. The survey covered 27 lines over a length of 34.7 line kilometers.
Table 5
Location Province Number of Lines Length, Line km Number of Stations
Quebec 23 30.6 630
Newfoundland & Labrador 4 4.1 84
Total 27 34.7 714
The ground survey results were interpreted by Jean M. Hubert, P.Eng, consulting geophysicist for TSMC. Some of the anomaly areas surveyed covers the known DSO deposits. The intensity of the gravity anomaly (mgals values) over the deposits varies between 1.05 and 1.51. Comparable gravity values (mgals) seem to occur in all the surveyed areas indicating the potential for discovering additional DSO deposits. J. M. Hubert interpreted and evaluated all the survey data and recommended follow up surface exploration work with test pitting, trenching and test drilling of selected anomalies as shown in Appendix 3 Table 8. These selected targets show moderate to strong gravity values coinciding with moderate to weak magnetic anomalies.
Table 6
Hole No Coordinates UTM Total Interval meters Length Average Assay %
Easting Northing Depth m From To meters Fe SiO2 Al2O3 MnO P LOI
12TFN008 622009 6084602 32.89 0.00 30.48 30.48 44.51 33.58 0.75 0.04 0.01 1.73
12TFN009 622139 6084422 39.47 6.10 36.58 30.48 48.51 27.99 0.85 0.03 0.04 1.54
12TFN008A 521977 6084579 32.89 0.00 30.48 30.48 56.89 16.54 0.59 0.03 0.01 1.30
12TFN020 621737 6084684 39.47 3.05 33.53 30.48 54.18 21.20 0.23 0.03 0.01 0.92
12TFN021 621857 6084635 26.32 0.00 3.05 3.05 52.76 20.66 0.93 0.07 0.01 2.50
12TFN019 621875 6084714 39.47 3.05 36.58 33.53 55.82 17.87 0.03 0.01 0.03 1.53
Proposed 2014 Summer Exploration Program
The preliminary drilling results of the Timmins Plant Site anomaly indicate the presence of leached and enriched DSO type of material in that area (Table 6). Because of the on-going production, work prioritization and development of several deposits to feed the dry crushing and screening plant, no work was undertaken in 2013 to further evaluate the anomaly. This area is planned to be fully explored with additional drilling during the summer of 2014. In addition, all recommended gravity anomaly targets, will be test pitted and trenched initially by using backhoes in a systematic manner. If DSO type of material is encountered, the area will be trenched, mapped, sampled and the mineralized area will be delineated. In areas of deep overburden, test drilling will be carried out in a grid pattern to outline the leached and enriched zones. Detailed drilling will follow in potential areas outlined by initial exploration test pitting and trenching.
Hoping for PMs and other commodities to start upwards. NWLNF
TATA motors could one day replace one of the US's big 3.NWLNF
I wonder how the Iron ore pipeline is doing in Northern Quebec. NWLFNF
New Millennium Iron Corp. Updates the Progress of the Taconite Project Feasibility Study & Expected filing of NI 43-101 Compl...
Date : 12/31/2013 @ 6:00AM
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New Millennium Iron Corp. Updates the Progress of the Taconite Project Feasibility Study & Expected filing of NI 43-101 Compl...
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New Millennium Iron Corp. Updates the Progress of the Taconite Project Feasibility Study and Expected filing of NI 43-101 Compliant Technical Report Results
CALGARY, ALBERTA--(Marketwired - Dec 31, 2013) - New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML)(OTCQX:NWLNF) today provided an update on the progress of the Taconite Project Feasibility Study ("TFS"), which is being jointly undertaken by Tata Steel Limited ("Tata Steel") and NML, and financed by the parties on a 64% - 36% basis, respectively.
NML announced on November 28, 2013 (NR 13-27) that it intended to release the NI 43-101 compliant results of the feasibility study as prepared by Met-Chem Canada, a firm qualified as an Independent Qualified Person. These results are now expected in January, 2014 and are based on the Study Manager's feasibility study report to an accuracy of +/- 15% covering the technical aspects for mining, process, power supply, transportation, pelletizing, materials handling and with the estimates for project completion, capital and operating costs.
NML has prepared the financial models for the project based on the Study Manager results, including after tax results. NML, after consultation with Tata Steel, decided recently to engage an internationally recognized firm of financial experts to review the financial models and assumptions to give more assurance of the results. This work is expected to be completed by mid-January, 2014.
Once complete, the study results will be reviewed at the NML Board level for approval prior to release of the results in a news release to be followed by filing of the Technical Report on Sedar within 45 days.
Dean Journeaux said, "We believe that the results are positive and considering the size and investment for this large project and its infrastructure made up of the Ferroduct and port terminal handling facilities, the infrastructure portion will be ideal for specialized long term financing at competitive interest rates and it was determined that these options should form part of the study parameters."
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited ("Tata Steel"), one of the largest steel producers in the world, have advanced a Direct Shipping Ore ("DSO") Project to the production stage, from which commercial sales will soon begin. Tata Steel owns approximately 26.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by Tata Steel Minerals Canada Limited ("TSMC"), which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 21.0 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.2% Fe, 10.3 million tonnes of Inferred Resources at an average grade of 58.3% Fe and about 25.0 - 30.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009, news release 10-12 dated July 8, 2010 and news release 12-14, dated May 31, 2012). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13 dated July 5, 2006 and news release 07-11 dated July 17, 2007); KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated January 16, 2009). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits. The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe (see news release NR 12-11, dated April 02, 2012).
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22%, and Inferred Resources of 795 million tonnes at an average grade of 30.56% (see news release NR 13-04, dated February 11, 2013).
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits, and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631 billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an average grade of 29.83% Fe (see news release NR 13-15, dated May 23, 2013).
The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com, www.tatasteel.com, www.tatasteelcanada.com, and www.tatasteeleurope.com.
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
CALGARY, ALBERTA--(Marketwired - Aug 16, 2013) - New Millennium Iron Corp. ("NML", the "Company" or "Corporation") (NML.TO)(NWLNF) announced today that Tata Steel Minerals Canada Limited ("TSMC") and the NunatuKavut Community Council ("NCC") signed a Cooperation Agreement for the Direct Shipping Ore ("DSO") Project.
TSMC is a joint venture between Tata Steel Limited and NML, which have 80% and 20% interests, respectively. TSMC is developing iron ore deposits in the Canadian provinces of Quebec and Newfoundland and Labrador. TSMC is part of Tata Steel Group of companies. Tata Steel Group is among the top ten global steel companies with crude steel capacity of over 26.5 million tonnes per annum (mtpa). Tata Steel has over 80,000 employees across five continents and is a Fortune 500 company.
NCC stated in a press release dated August 14, 2013, "NCC is the aboriginal organization representing the Southern Inuit of Labrador. The Southern Inuit of Labrador number approximately 6,000 and have asserted Land Rights to a vast area of Labrador. The aboriginal organization from Labrador and the mining company have been in negotiations for many months to form an agreement that addresses issues of concern for NCC and provides socio-economic benefits to NCC and its people. The agreement covers environmental protection, employment, and business opportunities including financial benefits. It also commits TSMC to make every reasonable effort to ensure that contractors hired to work on the DSO Project also comply with the agreement where warranted."
"Companies know they have to deal with our real concerns," says Todd Russell, NCC President, in the same press release. "This is another indication that we can do so in an air of mutual respect." Russell adds "It's about building right relationships, and this agreement will work to achieve just that."
Rajesh Sharma, Chief Executive Officer & Managing Director of TSMC, said, "We are very happy to sign this agreement with NunatuKavut Community Council, which attests our desire to continue building positive relations with the communities. This is in line with the Tata Group's philosophy of considering the community as an integral part of its business. The signing of this agreement is an important milestone in the journey of TSMC."
Dean Journeaux, President and Chief Executive Officer of NML, said, "NML is happy to see that TSMC has made this agreement with NCC. It is a continuation of the many steps that contribute to achieving NML's stated vision and goal of further developing and benefitting the people living in its project areas. The Millennium Iron Range projects will benefit from the availability of qualified local people for operating and management roles."
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited ("Tata Steel"), one of the largest steel producers in the world, have advanced a direct shipping ore project ("DSO Project") to the production stage, from which commercial sales will soon begin. Tata Steel Limited owns approximately 26.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). The DSO Project is owned and operated by Tata Steel Minerals Canada ("TSMC)", which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 21.0 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.2% Fe, 10.3 million tonnes of Inferred Resources at an average grade of 58.3% Fe and about 25.0 - 30.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009, news release 10-12 dated July 8, 2010 and news release 12-14, dated May 31, 2012). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13 dated July 5, 2006 and news release 07-11 dated July 17, 2007); KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated January 16, 2009). Tata Steel also exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits.
The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40 holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe (see news release NR 12-11, dated April 02, 2012).
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22%, and Inferred Resources of 795 million tonnes at an average grade of 30.56% (see news release NR 13-04, dated February 11, 2013).
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits, and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631 billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an average grade of 29.83% Fe (see news release NR 13-15, dated May 23, 2013).
The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com, www.tatasteel.com, www.tatasteelcanada.com, and www.tatasteeleurope.com.
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
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 may contains forward looking statements relating to future opportunities, business strategies, mineral exploration, development and production plans and competitive advantages.
The forward looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimated results in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in the forward looking statements, including among other things: inability of the Corporation to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, including business competition, changes in government regulations or in tax laws; general political and social uncertainties; commodity prices; the actual results of exploration, development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Corporation; timing and availability of external financing on acceptable terms; conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Readers are cautioned that the foregoing list is not exhaustive.
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 Corporation 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.
With respect to the disclosure of historical resources in this news release that are not currently in compliance with National Instrument 43-101, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
Contact:
New Millennium Iron Corp.
Dean Journeaux
President & CEO
(514) 935-3204
New Millennium Iron Corp.
Andreas Curkovic
Investor Relations
(416) 577-9927
https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=109673
NEW MILLENNIUM IRON CORP.
SECOND QUARTER REPORT 2013 New Millennium Iron Corp.
Quaterly Report
June 30, 2013
Letter to Shareholders 1
Management’s Discussion and Analysis of the Company’s
Financial Condition and Results of Operations 2
Financial Statements 13
Condensed Interim Consolidated Statement of Financial Position 14
Condensed Interim Consolidated Statement of Comprehensive Income 15
Condensed Interim Consolidated Statement of Changes in Equity 16
Condensed Interim Consolidated Statement of Cash Flows 17
Notes to Condensed Interim Consolidated Financial Statements 18-32August, 2013
MESSAGE TO SHAREHOLDERS
New Millennium Iron Corp. (“NML” or the “Company”) is pleased to report its unaudited financial and
operational results for the three and six month periods ended June 30, 2013
The significant Second Quarter events were:
Direct Shipping Ore (“DSO”) Project
? Resumption of saleable ore production with dry crushing and screening operation.
? Advancement of construction of the covered ore processing plant and ancillary facilities.
Taconite Project
? Continuing review of preliminary feasibility study report by NML, Tata Steel and Study Manager.
Exploration
? Announcement of resource estimate for the Howells River North and Howells Lake properties.
General
? OTCQX listing.
? Succession planning initiative
The significant subsequent events were:
DSO Project
? Agreement with Iron Ore Company of Canada regarding shipments and commercial sales.
? Loading of first train with DSO products.
General
? Update on construction of new multi-user dock at Sept-Îles.
? Board of Directors resignation.
1MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE COMPANY’S
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the financial results of New Millennium Iron Corp. (“NML”, the
“Company”, or the “Corporation”) for the interim three and six month periods ended June 30, 2013
should be read in conjunction with the Company’s unaudited condensed interim consolidated financial
statements and related notes for the period ended June 30, 2013, and the audited consolidated financial
statements and MD&A for the years ended December 31, 2012 and 2011.
These condensed interim financial statements, including comparatives, have been prepared using
accounting policies in compliance with International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board (“IASB”).
All dollar figures are in Canadian dollars (“C$”), unless otherwise stated.
FORWARD LOOKING STATEMENTS
This MD&A 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 MD&A may contain forward looking statements relating to future
opportunities, business strategies, mineral exploration, development and production plans and
competitive advantages.
The forward looking statements regarding the Corporation are based on certain key expectations and
assumptions of the Corporation concerning anticipated financial performance, business prospects,
strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital
expenditures in carrying out planned activities, the availability and cost of labour and services and the
ability to obtain financing on acceptable terms, the actual results of exploration and development projects
being equivalent to or better than estimated results in technical reports or prior activities, and future costs
and expenses being based on historical costs and expenses, adjusted for inflation, all of which are
subject to change based on market conditions and potential timing delays. Although management of the
Corporation consider these assumptions to be reasonable based on information currently available to
them, they may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general
and specific) and risks that forward looking statements will not be achieved. Undue reliance should not
be placed on forward looking statements, as a number of important factors could cause the actual results
to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and
intentions expressed in the forward looking statements, including among other things: inability of the
Corporation to continue meet the listing requirements of stock exchanges and other regulatory
requirements, general economic and market factors, including business competition, changes in
government regulations or in tax laws; general political and social uncertainties; commodity prices; the
actual results of exploration, development or operational activities; changes in project parameters as
plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance;
delay or failure to receive board or regulatory approvals; changes in legislation, including environmental
legislation, affecting the Corporation; timing and availability of external financing on acceptable terms;
conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic
evaluations; and lack of qualified, skilled labour or loss of key individuals. Readers are cautioned that the
foregoing list is not exhaustive.
2The forward looking statements contained herein are expressly qualified in their entirety by this cautionary
statement. The forward looking statements included in this MD&A are made as of the date of this MD&A
and the Corporation 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.
With respect to the disclosure of historical resources in this MD&A that are not currently in compliance
with National Instrument 43-101, a qualified person has not done sufficient work to classify the historical
estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical
estimate as current mineral resources or mineral reserves and the historical estimate should not be relied
upon.
OVERALL PERFORMANCE
Overview of Business
The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland
and Labrador and in the Province of Quebec, which holds among the world’s largest undeveloped
magnetic iron ore deposits. In the same area, the Corporation and Tata Steel Limited (“Tata Steel”), one
of the largest steel producers in the world, have advanced a direct shipping ore project (“DSO Project”) to
the production stage, from which commercial sales will soon begin. Tata Steel Limited owns
approximately 26.3% of New Millennium and is the Corporation’s largest shareholder and strategic
partner.
Tata Steel exercised its exclusive option to participate in the DSO Project and has a commitment to take
the resulting production. The DSO Project is owned and operated by Tata Steel Minerals Canada
(“TSMC”), which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains
64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 21.0
million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.2% Fe, 10.3
million tonnes of Inferred Resources at an average grade of 58.3% Fe and about 25.0 - 30.0 million
tonnes of historical resources that are not currently in compliance with NI 43-101. A qualified person has
not done sufficient work to classify the historical estimate as current mineral resources or mineral
reserves, and as such the Corporation is not treating the historical estimate as current mineral resources
or mineral reserves and the historical estimate should not be relied upon.
The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of
Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated
resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average
grade of 29.3% Fe; KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average
grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3
% Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe. Tata Steel also
exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag
Project and the KéMag Project.
The Millennium Iron Range also hosts other large taconite deposits.
The first is the Lac Ritchie property located at the north end of the Range. The initial 2011 drilling of 40
holes in this property revealed Indicated Resources of 3.330 billion tonnes at an average grade of 30.3%
Fe, and Inferred Resources of 1.437 billion tonnes at an average grade of 30.9% Fe.
Two other taconite deposits are located south of the LabMag deposit in the Millennium Iron Range. The
initial 2012 drilling of 23 holes in the Sheps Lake property and of 50 holes in the Perault Lake property
revealed Indicated Resources of 3.580 billion tonnes at an average grade of 31.22% Fe, and Inferred
Resources of 795 million tonnes at an average grade of 30.56% Fe.
The Howells Lake - Howells River North deposit is located between the LabMag and KéMag deposits,
and evidences mineral continuity in the Range. The 2011 and 2012 drilling of 11 holes in the Howells
River North property and of 45 holes in the Howells Lake property, revealed Indicated Resources of 7.631
billion tonnes at an average grade of 30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an
average grade of 29.83% Fe.
3NML’s prominent iron ore resource holdings are summarized in the following table:
Summary of Millennium Iron Range Resources
Mineral Resource Estimate
(Based on a cut-off of 18% DTWR)
Property Resources Category, Million Tonnes
Proven & Probable Measured & Indicated Inferred
KéMag 2,141 307 1,014
LabMag 3,545 1,045 1,151
Lac Ritchie 3,330 1,437
Howells Lake-Howells River North 7,631 3,310
Sheps Lake 1,967 289
Perault Lake 1,612 507
Total 5,686 15,892 7,708
Note: NML owns 100% of the properties mentioned above except for LabMag, Howells River North and Shep’s Lake,
which are 80% owned through the Corporation’s interest in LabMag Limited Partnership.
Also of significance is that the results for the Howells River North and Howells Lake properties confirm
that the taconite formation occurring in this area of the MIR is a stratigraphic continuation of the LabMag
deposit that connects to the KéMag deposit.
The Corporation’s mission is to add shareholder value through the responsible and expeditious
development of the Millennium Iron Range and other mineral projects to create a new large source of raw
materials for the world’s iron and steel industries.
For further information, please visit www.NMLiron.com, www.tatasteel.com, www.tatasteelcanada.com,
and www.tatasteeleurope.com.
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the Qualified Persons as defined in
National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure
contained in this MD&A.
RESULTS OF OPERATIONS
TSMC’S DSO PROJECT
PROGRESS REPORT
The DSO Project, in which NML has a 20% interest through TSMC, has advanced to the production
stage. Upon completion, there will be two saleable product streams: 1) A crushed and screened,
approximately 62% Fe grade ore first mined and produced in 2012; and 2) higher Fe, low gangue fines in
two size ranges produced from an innovative, year round processing plant now in the advanced
construction stage.
Commercial sales of the crushed and screened ore are expected to begin in the current quarter.
Meanwhile, construction of the process plant and ancillary facilities is moving well towards completion.
Commissioning of the sizing station and plant equipment start-up are scheduled for Q4 2013 and Q1
2014, respectively. Other activity to report includes:
? Advancement on the fabric covering of the dome that will house the plant itself.
? All pre-cast foundations in place.
? Casting of larger foundations and slabs as well as erection of internal structural steel all
essentially completed.
? Start of installation of mechanical equipment.
TSMC’s objective is to complete the installation of the outside ancillary facilities, such as the sizing
station, conveyors and train loading station, prior to the onset of winter. Work on the process plant will
then continue inside in a protected environment under the covered dome.
4So that TSMC can maintain sales and revenue through the 2013/14 winter season, the crushing and
screening plant operation will continue with the addition of product drying equipment.
TACONITE PROJECT
The Taconite Project involves large-scale development of the LabMag and KéMag deposits to produce
pellets and concentrate, and is in the final feasibility stage also with Tata Steel as a partner through a
Binding Heads-of-Agreement signed in March 2011. Tata Steel and NML are funding 64% and 36% of
the feasibility work, respectively.
Building on NML’s and Tata Steel’s technical expertise, the Project aims to be innovative and competitive,
targeting a favourable position on the global cost curve for pellet producers. Natural advantages include
a low stripping ratio and magnetite ore, which reduces energy costs in the pelletizing process. The
Project would use large-scale and technologically advanced equipment.
At the end of December 2012, NML announced that a preliminary feasibility study report had been
submitted by the Study Manager along with a request for a further period to complete its internal
corporate review process, including technical aspects and finalization of the capital cost estimates. In
light of the Taconite Project’s great scale, NML and TSMC agreed and continue to work with the Study
Manager and specialized consultants to finalize the report. This process is expected to be completed
before the end of the year, after which the results will be presented to the Tata Steel and NML boards of
directors.
EXPLORATION OF OTHER PROPERTIES
Beyond the DSO and Taconite projects, NML has the opportunity to further develop the potential of its
land holdings in the MIR. Announcements over the past eighteen months have confirmed NI 43-101
mineral resource estimates for the Lac Ritchie, Perault Lake and Sheps Lake taconite properties
controlled by NML. This already important resource base was added to in the second quarter.
On May 23, 2013, NML announced a resource estimate for its 80% owned Howells River North (Naskapi
LabMag Trust through LabMag Limited Partnership owns the other 20%) and 100% owned Howells Lake
properties. Data collected from the drilling programs on each resulted in total NI 43-101 compliant
mineral resource estimates, at a cut-off grade of 18% DTWR, of 7.63 billion tonnes of Indicated Mineral
Resources and an additional 3.31 million tonnes of Inferred Mineral Resources. In accordance with NI
43-101 requirements, a Technical Report in respect of these mineral resource estimates was filed on
SEDAR on May 30, 2013.
GENERAL CORPORATE INFORMATION
OTCQX Listing
On April 10, 2013, NML announced that its common shares had begun trading in the United States on the
OTCQX International under the symbol “NWLNF”. The OTCQX is the premier marketplace on OTC
Markets Group’s highly visible electronic trading venue in the U.S. and the OTCQX International tier is
designed for non-U.S. companies listed on qualified international stock exchanges. NML expects to
benefit from its trading on the OTCQX International by gaining greater exposure, accessibility and liquidity
in the United States.
CEO Succession Planning
In July 2011, principal founder of NML Robert Martin stepped down as President and Chief Executive
Officer (“CEO”) and was succeeded by Dean Journeaux, also a co-founder. As part of the Company’s
orderly succession plan, NML had previously searched privately for a Chief Operating Officer with the
capability to become CEO. NML is now currently working with a worldwide executive search agency in
connection with the search for a replacement CEO and the process is ongoing. Following the hiring of his
successor and retirement, Mr. Journeaux will continue contributing to NML in a senior capacity.
5SUBSEQUENT EVENTS
Agreement with Iron Ore Company of Canada and Loading of First Train
Initially, the DSO Project’s commercial sales will be carried out under a confidential agreement between
TSMC and Iron Ore Company of Canada (IOC) announced on July 4, 2013 that calls for IOC to provide
material handling and marketing services for a fee. Haulage of DSO Project ore from Schefferville began
on July 10 and trains are being dispatched on a regular basis for unloading and stockpiling at IOC’s
shipping terminal at the Port of Sept-Iles. As mentioned above, the first ship is expected to be loaded
sometime in the current quarter.
Update on Construction of New Multi-User Dock at Sept-Îles
For the longer term, TSMC plans to ship over the Port of Sept-Iles’ new deep water dock, in which both
TSMC and NML are investors. In July 2013, the Company paid its second and last instalment for a total
buy-in of $38,372,000. It is also intended to have this multi-user facility service the Taconite Project.
Based on an announcement by the Port of Sept-Îles on July 9, 2013, construction is on schedule and the
new dock is expected to be operational in Q2 2014.
Board Resignation
On July 3, 2013, NML announced that Ms. Cathy Bennett had resigned from the Board of Directors,
effective July 2. Ms. Bennett’s decision to resign her position immediately followed her public
announcement that she would be seeking the Liberal Party Leadership in Newfoundland and Labrador.
FINANCIAL CONDITION
The following discussion of the Corporation’s financial performance is based on the unaudited
Condensed Interim Consolidated Financial Statements as of June 30, 2013 (“financial statements”) set
forth herein. As discussed in Note 2 to the financial statements, they are prepared in accordance with
International Accounting Standard 34, Interim Financial Reporting, as issued by the IASB.
These financial statements should be read in conjunction with the Company’s December 31, 2012
audited consolidated financial statements (“FYE 2012”).
Management is required to make estimates and assumptions that effect the reported amounts of assets
and liabilities at the date of the financial statements and revenue and expenses for the period then ended.
The unaudited Condensed Interim Consolidated Statement of Financial Position as of June 30, 2013
indicates cash and cash equivalents of $47,255,194, short-term investments of $15,231,640, sales taxes,
other receivables and prepaid expenses of $1,534,445, and the current portion of tax credits and mining
duties receivable of $5,392,368 resulting in total current assets of $69,413,647, a decrease of $5,897,012
from FYE 2012. The non-current assets are comprised of the long-term portion of tax credits and mining
duties receivable of $2,310,700, mineral exploration and evaluation assets of $57,910,172, other assets
of $19,316,275, deposits on contracts of $1,241,881, property and equipment of $666,301 and long-term
investments of $31,542,605. The total assets of $182,401,581 are a decrease of $6,962,649 from FYE
2012.
The Company’s current liabilities at June 30, 2013 are its trade and other payables of $4,088,790, and
advances from Tata Steel of $2,457,402 for a total of $6,546,192, a decrease of $5,725,298 from FYE
2012. Non-current liabilities consist of an amount due to Naskapi/LabMag Trust of $285,324 for total
liabilities of $6,831,516 which is a decrease of $5,725,298 from FYE 2012. Equity attributable to
shareholders of the parent company is $175,331,714, a decrease of $1,237,351 from FYE 2012, and is
comprised of share capital of $177,153,492, contributed surplus of $18,450,135, less shares subject to
cancellation of $176,940 and the deficit of $20,094,973. The non-controlling interest of $238,351 remains
unchanged from FYE 2012, for total equity of $175,570,065.
6For the three months ended June 30, 2013, the Company realized a net loss of $2,244,249, or $0.01 per
share, compared to a net loss of $1,596,355 or $0.01 per share for the comparative period in 2012. This
loss represents operating expenses of $2,507,894, (2012 - $2,044,044), net of service fee revenue of
$35,739 (2012 – $147,458) and investment income of $227,906 (2012 - $300,231). The increase in this
period’s operating expenses is mainly due to an increase in stock-based compensation expense from
$951,106 in Q2 2012 to $1,168,601 in Q2 2013 and an increase in office and administrative expenses
from $537,619 in Q2 2012 to $806,582 in Q2 2013.
The Company expects to continue incurring losses until it begins receiving dividends from TSMC. These
losses are expected to be funded by the current cash, investments and then if necessary, through equity
and or debt financing or investments by strategic partners.
As at June 30, 2013, the deferred income tax assets, which arose as a result of applying the capital and
non-capital losses carried forward to taxable income, have not been recognized in the accounts due to
uncertainty regarding their utilization.
All costs associated with mineral properties, totalling $57,910,172 as outlined in Note 9 to the June 30,
2013 financial statements, have been classified as mineral exploration and evaluation assets. The
expenditures are divided between the properties as follows: LabMag Property $25,916,273, KéMag
Property $15,433,997, Lac Ritchie Property $2,420,554, Perault Lake Property $4,785,247, Sheps Lake
Property $1,149,339, Howell’s Lake-Howell’s River North Properties $4,947,107 and Other Properties
$3,257,655. The cost centers for these capitalized expenditures are: mineral licenses $2,965,501, drilling
$34,310,579, resource evaluation $33,935,685, environmental $17,135,888, and amortization of property
and equipment $106,541. These expenditures are partially offset by tax credits and mining duties of
$12,702,889 and the Tata Steel payments of $17,841,133. The non-controlling interest of $238,351
relates to LabMag Limited Partnership whose properties include the LabMag Property, Sheps Lake
Property and Howell’s River North Property. The carrying value of the mineral exploration and evaluation
assets are reviewed by the Company on a quarterly basis by reference to the project economics,
including the timing of the exploration and evaluation work, the work programs and exploration results
achieved by the Company. At June 30, 2013, the Company believes that the carrying values of the
properties are less than their net recoverable amounts and as such there has been no impairment of
value on any of these properties.
SUMMARY OF QUARTERLY RESULTS
The following table sets out selected unaudited quarterly financial information of the Company for the
eight quarters ended June 30, 2013. This information is derived from unaudited quarterly financial
statements prepared by management. The Company's condensed interim consolidated financial
statements are prepared in accordance with IFRS and expressed in Canadian dollars.
Jun-13 Mar-13 Dec-12 Sept-12 Jun-12 Mar-12 Dec-11 Sept-11
Investment
Income 227,906 193,683 228,842 247,373 300,231 315,225 252,073 258,075
Net Income
(Loss) (2,244,249) (2,001,421) (2,187,017) (3,086,419) (1,596,355) (2,192,428) 28,564,955(2) (1,849,133)
Income (Loss)
Per Share(1) (0.01) (0.01) (0.01) (0.02) (0.01) (0.01) 0.16 (0.01)
Diluted income
per share(1)
-
- - - - - 0.16 -
(1) The effect of the exercise of stock options would be anti-dilutive for the purposes of calculating the fully
diluted earnings per share for all periods prior to and subsequent to the three months ended
December 31, 2011.
(2) The net income for the three months ended December 31, 2011, was the result of the gain on sale of
the DSO Properties during the quarter in the amount of $31,162,000.
7SECOND QUARTER RESULTS
The most significant items comparing the results of operations in the second quarter of 2013 versus the
same period in 2012 is a increase in general and administrative expenses to $2,508,000 in Q2 2013 from
$2,044,000 in Q2 2012. Added to this increase in expenses is a decrease in service fee revenue to
$36,000 in Q2 2013 from $147,000 in Q2 2012 and a decrease in investment income to $228,000 in Q2
2013 from $300,000 in Q2 2012.
The most significant items affecting general and administrative expenses are an increase in stock-based
compensation to $1,169,000 compared with $951,000 in Q2 2012, a decrease in Q2 2013 of market
development expense to $185,000 for which the corresponding expense in Q2 2012 is $239,000, an
increase in professional fees in Q2 2013 to $278,000 compared with $234,000 in Q2 2012 and an
increase in office and administrative expenses to $807,000 compared with $538,000 in Q2 2012. The
decrease in investment income is due to lower levels of investments held during Q2 2013 versus Q2
2012. The service fee revenue decreased as TSMC is utilizing less of NML’s resources as they build up
their own team.
As a result, the Company’s net loss for the second quarter ended June 30, 2013 totalled approximately
$2,244,000 (loss of $0.01 per share) compared to a net loss of approximately $1,596,000 (loss of $0.01
per share) for the comparative period in 2012.
USE OF ACCOUNTING ESTIMATES AND JUDGMENTS
The information is provided in Note 3 of the financial statements.
STANDARDS ISSUED BUT NOT YET EFFECTIVE
The information is provided in Note 4 of the financial statements.
FINANCIAL INSTRUMENTS
All financial instruments are recognized when the Company becomes a party to the contractual provisions
of the financial instrument and are initially measured at fair value plus transaction costs, except for
financial assets and financial liabilities carried at fair value through profit or loss, which are measured
initially at fair value. Financial assets are derecognized when the contractual right to the cash flows from
the financial assets expire, or when the financial asset and all substantial risks and rewards are
transferred.
An extended description of the Company’s financial instruments and their fair values is provided in Note
17 of 2012 annual financial statements.
FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES
In the normal course of operations, the Company is exposed to various financial risks. The Company
does not enter into financial instrument agreements including derivative financial instruments for
speculative purposes. Please refer to Note 13 accompanying financial statements for an extended
description of the Company’s main financial risks, objectives and policies.
8CAPITAL MANAGEMENT POLICIES AND PROCEDURES
The information is provided in Note 16 of the financial statements.
LIQUIDITY AND CAPITAL RESOURCES
Working Capital
Working capital at June 30, 2013 of $62,867,455 represents a decrease of $171,714 from the FYE 2012
total of $63,039,169. This decrease in working capital is due to the usage of cash and cash equivalents
and short-term investments for the Company’s investment in the exploration and evaluation of its mineral
assets as well as funding its operational loss for the period only partly being offset by the increase in the
current portion of tax credits and mining duties receivable, decrease in trade and other payables and
decrease in the advances from Tata Steel.
The Company’s working capital has been mainly invested in cash, guaranteed investment certificates, a
promissory note and commercial paper with relatively short maturities all either issued by or guaranteed
by Canadian Federal and Provincial governments or their crown corporations. These investments have
been classified as cash and cash equivalents and as short-term investments. NML used its cash and
cash equivalents and short-term investments from December 31, 2012 to pay its trade and other
payables, fund its operations and the continuing exploration and evaluation of its mineral assets. The
Company intends to use a portion of its cash and cash equivalents and short term investments in order to
fund its portion of the Taconite Feasibility Study, perform new drilling projects in the taconite anomalies
located in the Millennium Iron Range in order to fulfill assessment work required to maintain claims, pay
for the second instalment of the Port agreement, and pay future corporate operating expenses.
Capital Expenditures
There was $335,993 of acquisitions of property and equipment during the first six months of 2013
compared to $239,306 in the corresponding period in 2012. This acquisition is for the purchase of land to
be used in operations in Schefferville, Quebec.
Capital Resources
At June 30, 2013, NML has paid up capital of $177,153,492 (December 31, 2012 - $175,877,147)
representing 180,219,146 (December 31, 2012 – 179,221,646) common shares and contributed surplus
of $18,450,135 (December 31, 2012 - $16,531,035) that is partially offset by shares subject to
cancellation of $176,940 (2012 – Nil) and a deficit of $20,094,973 (December 31, 2012 - $15,839,117)
resulting in total equity attributable to shareholders of the Company of $175,331,714 (December 31, 2012
- $176,569,065). In addition there is a non-controlling interest of $238,351 (December 31, 2012 –
$238,351) resulting in total equity of $175,570,065 (December 31, 2012 - $176,807,416).
Commitments
Please refer to Note 17 of the accompanying financial statements for a summary of the Company’s
commitments.
TRANSACTIONS WITH RELATED PARTIES
Please refer to Note 15 of the accompanying financial statements for a summary of the Company’s
transactions with related parties and the related period end balances.
9CONTROLS AND PROCEDURES OVER FINANCIAL REPORTING
In compliance with the Canadian Securities Administrators’ National Instrument 52-109, the Company has
filed certificates signed by the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”)
that, among other things, report on the design and effectiveness of disclosure controls and procedures,
and the design and effectiveness of internal control over financial reporting.
Disclosure Control and Procedures
The CEO and the CFO have designed disclosure controls and procedures, or have caused them to be
designed under their supervision, in order to provide reasonable assurance that:
? material information relating to the Company has been made known to them; and
? information required to be disclosed in the Company’s filings is recorded, processed, summarized
and reported within the time periods specified in securities legislation.
An evaluation was carried out, under the supervision of the CEO and the CFO, of the design and
effectiveness of the disclosure controls and procedures. Based on this evaluation, the CEO and the CFO
concluded that the disclosure controls and procedures are effective at June 30, 2013.
Internal Control over Financial Reporting
The CEO and the CFO have also designed internal control over financial reporting, or have caused them
to be designed under their supervision, in order to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for financial reporting purposes in
accordance with IFRS.
An evaluation was carried out, under the supervision of the CEO and the CFO, of the design and
operating effectiveness of most critical aspects of our internal control over financial reporting. Based on
this evaluation, the CEO and the CFO concluded that the internal controls over financial reporting are
effective at June 30, 2013, using the criteria set forth by the Committee of Sponsoring Organizations
(COSO) of the Treadway Commission on Internal Control – Integrated Framework. The remaining
aspects of our internal control over financial reporting will be evaluated during the coming quarters.
Changes to Internal Control over Financial Reporting
No changes were made to our internal control over financial reporting during the quarter ended June 30,
2013, that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
MARKET REVIEW AND OUTLOOK
According to the World Steel Association’s (WSA) statistics, world crude steel production in its 64
reporting countries was 790 million metric tons (Mt) for the first six months of 2013, which represented an
increase of 2.0% over the same period in 2012.
The growth came mainly from Asia with a rate of 5.5%, of which China was a strong 7.4%. Meanwhile,
the EU-27, other Europe, North America and South America were all down from comparable 2012 levels.
The overall reporting countries’ crude steel capacity utilization rate was 79.2% in June, down by 1.5%
from the year-earlier rate. Overcapacity continues to be a drag on the steel market.
Looking ahead, however, there is more optimism in the World Steel Association’s latest, semi-annual
Short Range Outlook released on April 11th, with world Apparent Steel Use (ASU) of finished steel
10products expected to grow by 2.9% from 2012 to 2013, and by a further 3.2% in 2014 as a broadly based
recovery extends to Europe. Even if the rate of growth in China is moderating, the steel industry’s scale
there now involves significant volumes in absolute terms as illustrated by the WSA’s forecasted jump in
ASU of 40 million tonnes between 2012 and 2014.
The iron ore market remained volatile in the second quarter as Chinese steel makers continued to
purchase iron ore cautiously. Pricing as measured by the 62% Fe Fines CFR China reference started
April at approximately US$137 per tonne and ended June at just over US$116 per tonne, with
movements above and below this range over the period.
Forward curve pricing continued to anticipate more supply coming onto the market in the near-to-medium
term, a sentiment fuelled by the ramping up of production by Australia’s major producers in particular. At
the same time, the presently very difficult environment for new entry iron ore projects, coupled with
questions over Chinese domestic production and the future role of exports from India, makes the overall
supply development timeframe unclear.
DISCLOSURE OF OUTSTANDING SHARE DATA
The following information relates to share data of the Company as at June 30, 2013.
1. Share capital
(a) Authorized:
Unlimited number of common voting shares.
Unlimited number of preferred shares, without nominal or par value, issuable in series.
(b) Issued as of June 30, 2013: The Corporation has 180,219,146 common shares issued
($177,153,492).
(c) Issued as of August 12, 2013: The Corporation has 180,009,146 common shares issued
($176,947,062).
2. Options
The Corporation has adopted an incentive stock option plan whereby options may be granted from time to
time to directors, officers, employees and consultants to the Corporation with shares reserved for
issuance as options not to exceed 10% of the issued and outstanding common shares.
As of August 12, 2013, there were 16,443,000 common shares reserved for issuance pursuant to the
exercise of stock options (June 30, 2013 – 16,793,000) as follows:
Number of Outstanding Options Exercise Price Expiry Date
1,470,000 $0.37 January 20, 2014
33,000 $0.65 October 9, 2014
3,262,500 $0.90 June 30, 2015
36,000 $0.87 August 31, 2015
42,000 $3.52 February 8, 2016
3,017,500 $3.36 April 1, 2016
175,000 $3.16 April 29, 2016
52,000 $2.48 May 16, 2016
40,000 $2.48 July 18, 2016
72,000 $2.65 July 26 , 2016
32,000 $1.61 October 18, 2016
135,000 $1.65 November 1, 2016
110,000 $1.16 November 28, 2016
350,000 $1.43 December 6, 2016
11Number of Outstanding Options Exercise Price Expiry Date
160,000 $1.23 December 20, 2016
38,000 $1.65 January 4, 2017
37,000 $1.72 January 11, 2017
70,000 $2.02 January 24, 2017
65,000 $2.08 April 5, 2017
100,000 $1.93 April 11, 2017
56,000 $2.03 April 16, 2017
48,000 $1.59 July 2, 2017
3,635,000 $1.35 July 27, 2017
50,000 $1.30 September 10, 2017
80,000 $1.45 September 18, 2017
200,000 $1.57 October 4, 2017
40,000 $1.04 December 10, 2017
52,000 $1.62 January 8, 2018
2,985,000 $0.89 April 24, 2018
3. Warrants
At August 12, 2013, there were no common shares reserved for issuance pursuant to the exercise of
outstanding warrants (June 30, 2013 – Nil).
ADDITIONAL INFORMATION
Additional information relating to the Company is available on SEDAR at www.sedar.com
12Financial Statements 13
Condensed Interim Consolidated Statement of Financial Position 14
Condensed Interim Consolidated Statement of Comprehensive Income 15
Condensed Interim Consolidated Statement of Changes in Equity 16
Condensed Interim Consolidated Statement of Cash Flows 17
Notes to Condensed Interim Consolidated Financial Statements 18-32
New Millennium Iron Corp.
Unaudited Condensed Interim
Consolidated Financial Statements
June 30, 2013
13New Millennium Iron Corp.
Condensed Interim Consolidated Statement of Financial Position
(Unaudited)
(Expressed in Canadian Dollars)
June 30, 2013 December 31, 2012
$ $
ASSETS
Current assets
Cash and cash equivalents (Note 5) 47,255,194 8,514,976
Short-term investments (Note 6) 15,231,640 59,332,129
Sales taxes, other receivables and prepaid expenses (Note 15) 1,534,445 3,097,908
Tax credits and mining duties receivable 5,392,368 4,365,646
69,413,647 75,310,659
Non-current assets
Tax credits and mining duties receivable 2,310,700 5,820,468
Deposits on contracts 1,241,881 2,813,384
Other assets (Note 7) 19,316,275 19,253,723
Long-term investment (Note 8) 31,542,605 31,542,605
Mineral exploration and evaluation assets (Note 9) 57,910,172 54,141,322
Property and equipment 666,301 482,069
Total assets 182,401,581 189,364,230
EQUITY AND LIABILITIES
LIABILITIES
Current liabilities
Trade and other payables (Note 15) 4,088,790 7,755,190
Advance from Tata Steel (Note 9 and 15) 2,457,402 4,516,300
6,546,192 12,271,490
Non-current liabilities
Due to NNK Trust 285,324 285,324
Total liabilities 6,831,516 12,556,814
EQUITY
Share capital (Note 10) 177,153,492 175,877,147
Shares subject to cancellation (Note 10) (176,940) –
Contributed surplus 18,450,135 16,531,035
Deficit (20,094,973) (15,839,117)
Equity attributable to shareholdersof the parent Company 175,331,714 176,569,065
Non-controlling interest 238,351 238,351
Total equity 175,570,065 176,807,416
Total liabilities and equity 182,401,581 189,364,230
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Approved and authorized for issue by the Board of Directors on August 12, 2013 and signed on their behalf by:
/S/ Dean Journeaux /S/ Pierre Seccareccia
Director Director
14New Millennium Iron Corp.
Condensed Interim Consolidated Statement of Comprehensive Income
(Unaudited)
Six months ended June 30, 2013 and 2012
(Expressed in Canadian Dollars)
3 months ended June 30 6 months ended June 30
2013 2012 2013 2012
$ $ $$
Service fee revenue 35,739 147,458 141,460 437,051
Expenses
General and administrative (Note 11) 2,507,894 2,044,044 4,820,955 4,841,650
Loss before other items (2,472,155) (1,896,586) (4,679,495) (4,404,599)
Other items
Other income
– – 2,050 –
Investment income 227,906 300,231 421,589 615,456
227,906 300,231 423,639 615,456
Net loss and comprehensive loss (2,244,249) (1,596,355) (4,255,856) (3,789,143)
Attributable to:
Non-controlling interest – – – –
Shareholders of the parent Company (2,244,249) (1,596,355) (4,255,856) (3,789,143)
Net loss and comprehensive loss (2,244,249) (1,596,355) (4,255,856) (3,789,143)
Loss per share - basic and diluted (0.01) (0.01) (0.02) (0.02)
Weighted average number of shares
outstanding 180,220,794 178,206,554 180,082,599 177,878,046
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
15New Millennium Iron Corp.
Condensed Interim Consolidated Statement of Changes in Equity
(Unaudited)
Six months ended June 30, 2013 and 2012
(Expressed in Canadian Dollars)
Total
Share Capital Attributable to Non
Number of Shares subject Contributed Shareholders of Controlling Total
Shares Issued Amount to cancellation Surplus Deficit the parent Company Interest Equity
and Fully Paid $ $ $ $ $ $ $
Balance at January 1, 2012 176,267,964 172,344,038 -
12,665,152 (6,776,898) 178,232,292 238,351 178,470,643
Net loss - - - - (3,789,143) (3,789,143) - (3,789,143)
Share-based remuneration
- employees and directors - - -
2,671,075 -
2,671,075 - 2,671,075
- consultants - - -
59,989 -
59,989 - 59,989
Share capital issued 233,682 338,558 ---
338,558 - 338,558
Exercise of stock options 1,800,000 1,992,103 - (777,708) -
1,214,395 - 1,214,395
Balance at June 30, 2012 178,301,646 174,674,699 -
14,618,508 (10,566,041) 178,727,166 238,351 178,965,517
Balance at January 1, 2013 179,221,646 175,877,147 -
16,531,035 176,569,065 (15,839,117) 238,351 176,807,416
Net loss - - - - (4,255,856) (4,255,856) - (4,255,856)
Share-based remuneration
- employees and directors - - -
2,116,483 -
2,116,483 - 2,116,483
- consultants - - -
255,277 -
255,277 - 255,277
Share capital repurchased and cancelled (10,000) (9,830) - 280 - (9,550) - (9,550)
Shares subject to cancellation - - (176,940)
37,260 - (139,680) - (139,680)
Exercise of stock options 1,007,500 1,286,175 - (490,200) -
795,975 - 795,975
Balance at June 30, 2013 180,219,146 177,153,492 18,450,135 (176,940) (20,094,973) 175,331,714 238,351 175,570,065
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
16New Millennium Iron Corp.
Condensed Interim Consolidated Statement of Cash Flows
(Unaudited)
Six months ended June 30, 2013 and 2012
(Expressed in Canadian Dollars)
2013 2012
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss and comprehensive loss (4,255,856) (3,789,143)
Adjustments for:
Share-based remuneration
- Employees and directors 2,116,483 2,671,075
- Consultants 255,277 59,989
Depreciation of property and equipment 129,358 88,447
Loss on disposal of property and equipment 11,651 -
Interest income (421,589) (615,456)
2,091,180 2,204,055
Net changes in working capital items (Note 14) 1,108,448 227,432
Cash flows used by operating activities (1,056,228) (1,357,656)
CASH FLOW FROM INVESTING ACTIVITIES
Net redemption (purchases) of short term treasury bills, term deposits and GIC's 26,994,110 (2,592,454)
Purchase of bonds and GIC's with original maturities over one year - (11,300,000)
Redemption of bonds and GIC's with an original maturities over one year 16,844,692 11,811,240
Interest received 683,277 479,461
Deposits on contracts (133,598) (1,168,223)
Acquisition of property and equipment (335,993) (239,306)
Proceeds on disposition of property and equipment 6,500 -
Increase in other assets (62,552) -
Decrease in advance from Tata Steel (2,058,899) -
Tax credits and mining duties received 3,706,183 1,601,612
Additions to mineral exploration and evaluation assets (9,793,522) (11,711,836)
Allocation of Tata Steel payment to mineral exploration and
evaluation assets 3,299,503 4,782,580
Cash flows used by investing activities 39,149,701 (8,336,926)
CASH FLOW FROM FINANCING ACTIVITIES
Issuance of common shares 786,425 1,552,953
Purchase of treasury shares (139,680) -
Cash flows provided by financing activities 646,745 1,552,953
Net increase (decrease) in cash and cash equivalents 38,740,218 (8,141,629)
Cash and cash equivalents, beginning of period 8,514,976 31,116,221
Cash and cash equivalents, end of period 47,255,194 22,974,592
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
17New Millennium Iron Corp.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2013
(Expressed in Canadian Dollars)
1 - GOVERNING STATUTES AND NATURE OF OPERATIONS
The current principal activities of New Millennium Iron Corp. (“the Parent Company”) and its
subsidiaries (“the Company” or “NML”) are the exploration and evaluation of mineral properties.
The Parent Company was incorporated pursuant to the provisions of the Alberta Business
Corporations Act on August 8, 2003.
The address of the Company’s executive office is 2nd floor, 1303 Greene Avenue, Westmount,
Quebec, H3Z 2A7 and its head office is 800, 734 – 7 Avenue SW, Calgary, Alberta, T2P 3P8 and
its registered and records office is 1000, 250-2nd Street SW, Calgary, Alberta, T2P OC1.
2 - SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
These condensed interim consolidated financial statements have been prepared using
accounting policies consistent with International Financial Reporting Standards (“IFRS”) and in
accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting. The
unaudited condensed interim consolidated financial statements do not include all of the
information required for full annual financial statements, and should be read in conjunction with
the annual consolidated financial statements for the year ended December 31, 2012, as they
follow the same accounting policies and methods of application, except for the following new
accounting pronouncements which have been adopted on January 1, 2013:
IFRS 7 Financial Instruments – Disclosures
The amendment contains new disclosure requirements for financial assets and financial liabilities
that are offset in the statement of financial position or subject to master netting arrangements or
familiar agreements. The adoption of this amendment did not result in any changes to the
condensed interim consolidated financial statements.
IFRS 13 Fair Value Measurement
IFRS 13 defines fair value, sets out in a single IFRS a framework for measuring fair value and
requires disclosures about fair value measurements. IFRS 13 applies when other IFRSs require
or permit fair value measurements. It does not introduce any new requirements to measure an
asset or a liability at fair value, change what is measured at fair value in IFRS or address how to
present changes in fair value. The new standard clarifies that fair value is the price that would be
received to sell an asset, or paid to transfer a liability in an orderly transaction between market
participants, at the measurement date. Under existing IFRS, guidance on measuring and
disclosing fair value is dispersed among the specific standards requiring fair value measurements
and in many cases does not reflect a clear measurement basis or consistent disclosures. The
adoption of this new standard did not result in any changes of the condensed interim consolidated
financial statements.
IAS 1 Presentation of Items of Other Comprehensive Income
These amendments included a requirement for entities to group items presented in Other
Comprehensive Income (“OCI”) on the basis of whether they are potentially reclassifiable to profit
or loss subsequently (reclassification adjustment), and emphasize the importance of presenting
profit or loss and OCI together and with equal prominence. The adoption of this amendment did
not result in any changes to the condensed interim consolidated financial statements.
18New Millennium Iron Corp.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2013
(Expressed in Canadian Dollars)
2 - SIGNIFICANT ACCOUNTING POLICIES (continued)
Consolidation standards
In May 2011, the International Accounting Standards Board published four new and amended
standards addressing the accounting for consolidation, involvements in joint arrangements and
disclosure of involvements with other entities as listed below:
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the consolidation guidance in IAS 27, Consolidated and Separate Financial
Statements, and Standing Interpretations Committee Interpretation 12, – Consolidation - Special
Purpose Entities, by introducing a single consolidation model for all entities based on control,
irrespective of the nature of the investee. Under IFRS 10, control is based on whether an
investor has: 1) power over the investee; 2) exposure, or rights, to variable returns from its
involvement with the investee; and 3) the ability to use its power over the investee to affect the
amount of the returns. The adoption of this new standard did not result in any changes to the
condensed interim consolidated financial statements.
IFRS 11 Joint Arrangements
IFRS 11 replaces the guidance on “Joint ventures” in IAS 31. The new standard introduces a
principles-based approach to accounting for joint arrangements that requires a party to a joint
arrangement to recognize its rights and obligations arising from the arrangement. The new
standard requires that joint ventures be accounted for under the equity method thus eliminating
the option to proportionally consolidate such ventures. The Company does not currently have
any joint arrangements and as such, the adoption of this standard did not result in any changes to
the condensed interim consolidated financial statements.
IFRS 12 Disclosures of Involvement with Other Entities
IFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of
interests in other entities, including joint arrangements, associates, special purpose vehicles and
other off balance sheet vehicles. The adoption of this standard did not result in any changes to
the condensed interim consolidated financial statements.
Basis of presentation
The condensed interim consolidated financial statements have been prepared on the basis that
the Company will continue as a going concern, which assumes that the Company will be able to
realize its assets, and discharge its liabilities in the normal course of operations.
Basis of measurement
The condensed interim consolidated financial statements are prepared using the historical cost
basis, except for certain financial instruments that are recognized at fair value. These condensed
interim consolidated financial statements are presented in Canadian dollars ($), which is also the
Company’s functional currency and the functional currency of each of its subsidiaries.
19New Millennium Iron Corp.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2013
(Expressed in Canadian Dollars)
3 - USE OF ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of the condensed interim consolidated financial statements requires
management to undertake a number of judgments, estimates and assumptions about recognition
and measurement of assets, liabilities, income and expenses. The actual results may differ from
these judgments and estimates. These estimates and judgments are based on management’s
best knowledge of the events or circumstances and actions the Company may take in the future.
The estimates are reviewed on an ongoing basis. Information about the significant judgments,
estimates and assumptions that have the most significant effect on the recognition and
measurement of assets, liabilities, income and expenses are discussed in Note 3 of the
Company’s 2012 annual financial statements and are still applicable for the period ending June
30, 2013.
4 - STANDARDS ISSUED BUT NOT YET EFFECTIVE
A number of new standards, amendments to standards and interpretations have been issued but
are not yet effective for the period ended June 30, 2013. Accordingly, they have not been applied
in preparing these condensed interim consolidated financial statements. The Company is
currently assessing the impact that these standards will have on the consolidated financial
statements.
The standards issued but not yet effective that are expected to be relevant to the Company’s
consolidated financial statements are provided below. Certain other new standards and
interpretations have been issued but are not expected to have a material impact on the
Company’s consolidated financial statements.
IAS 32 Financial Instruments: Presentation
IAS 32 was amended by the IASB in December 2011. The amendment clarifies that an entity
that has a legally enforceable right to offset financial assets and financial liabilities if that right is
not contingent on a future event and it is enforceable both in the normal course of business and in
the event of default, insolvency or bankruptcy of the entity and all counterparties. The
amendments to IAS 32 are effective for annual periods beginning on or after January 1, 2014,
with earlier adoption permitted.
IFRS 9 Financial Instruments classification and measurement
This is the first part of a new standard on classification and measurement of financial assets that
will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 has two
measurement categories: amortized cost and fair value. All equity instruments are measured at
fair value. A debt instrument is at amortized cost only if the entity is holding it to collect
contractual cash flows and the cash flows represent principal and interest. Otherwise it is at fair
value through profit and loss. Guidance is also provided on financial liabilities and de-recognition
of financial instruments. This new standard is effective for years beginning on or after January 1,
2015.
20New Millennium Iron Corp.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2013
(Expressed in Canadian Dollars)
5 - CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components:
June 30,
2013
$
December 31,
2012
$
Cash in bank 29,866,579 7,308,847
Money market funds
Short term investments
1,215,180
16,173,435
1,206,129
-
47,255,194 8,514,976
At June 30, 2013 and December 31, 2012, the money market funds have no specific maturity
date, bear interest at 1.5% and can be sold at any time. The short term investments consist of
GIC’s, a promissory note and commercial paper having original maturities of three months or less
from the acquisition date that are readily convertible into known amounts of cash. The GIC’s
mature between July and September 2013 and bear interest between 1.40% and 1.60%. The
promissory note matures August 2013 and bears interest at 1.02%. The commercial paper
matures July 2013 and bears interest at 1.14%.
As disclosed in Notes 7 and 17, NML has provided cash and cash equivalents as security for
irrevocable letters of credit toalling $19,436,000. Security was granted on cash with a carrying
value of $20,143,957.
6 - SHORT-TERM INVESTMENTS
At June 30, 2013, investments include:
Security
Carrying
Value
$ Maturity Interest Rate
GIC’s 10,156,112 Between September 2013 and April 2014 1.55%
Promissory Note 5,075,528 July 2013 1.07%
15,231,640
At December 31, 2012, investments include:
Security
Carrying
Value
$ Maturity Interest Rate
GIC’s 19,619,987 Between January and September 2013 Between 0.5% and 2.19%
Treasury Bills 20,580,284 Between January and June 2013 Between 0.97% and 1.11%
Promissory Note 5,048,890 July 2013 1.07%
Bonds 14,082,968 Between February and June 2013 Between 1.00% and 1.18%
59,332,129
21New Millennium Iron Corp.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2013
(Expressed in Canadian Dollars)
6 - SHORT-TERM INVESTMENTS (continued)
Included in the above investments are GIC’s of $10,156,112 (At December 31, 2012 –
$7,575,045) and a promissory note of $5,075,528 (At December 31, 2012 – $5,048,890) that are
classified as available for sale.
As disclosed in Notes 7 and 17, NML has provided investments as security for irrevocable letters
of credit totalling $19,436,000. Security was granted on a promissory note with a carrying value
of $5,075,528.
7 - OTHER ASSETS
On July 13, 2012, the Company entered into an agreement with the Sept Iles Port authority (“Port
Authority”) providing NML with access to a new multi user deep water dock facility. As part of the
agreement, NML has a minimum annual shipping capacity of 15 million tons a year for 20 years,
with options to renew for four more five year terms. Construction of the port is expected to be
completed in 2014. NML’s buy-in for this agreement is calculated at $38,372,000. Of this amount,
$19,186,000 (50%) was disbursed on July 16, 2012 and is reflected in these financial statements
as other assets. The remaining 50%, or $19,186,000, is due and has been paid in July 2013 for
which NML has provided the Port Authority with an irrevocable letter of credit as described in
Note 17. As a result of these payments, NML will have access to the dock facility at favourable
shipping rates.
8 - LONG-TERM INVESTMENT
June 30,
2013
$
December 31,
2012
$
TSMC 31,542,605 31,542,605
This represents a 20% ownership interest in Tata Steel Minerals Canada Ltd. (“TSMC”).
Tata Steel Global Minerals Holdings PTE Ltd. (“Tata Steel”) will arrange funding of the capital
costs of TSMC’s DSO properties development up to $300 million and has committed to purchase,
at world prices, 100% of DSO’s iron ore production meeting certain quality specifications for the
life of the mining operation. At statement date, there has been no formal request made to the
Company to contribute capital to TSMC.
22New Millennium Iron Corp.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2013
(Expressed in Canadian Dollars)
9 - MINERAL EXPLORATION AND EVALUATION ASSETS
LabMag
Property
KéMag
Property
Lac
Ritchie
Property
Perault
Lake
Property
Sheps
Lake
Property
Howell’s
LakeHowell’s
River
North
Properties
Other
Properties
Balance as
at June 30
2013
Balance as
at Dec. 31
2012
$ $ $ $ $ $ $ $ $
Balance, at
December 31,
2012 24,319,885 14,313,040 2,385,040 4,674,938 1,098,842 4,903,852 2,445,725 - -
Mineral licenses - 17,680 22,624 19,460 12,400 850 96,075 2,965,501 2,796,412
Drilling 39,985 63,333 4,092 38,974 5,409 38,613 838,231 34,310,579 33,281,942
Resource
evaluation 2,913,854 2,350,991 2,654 25,379 32,688 28,792 60,047 33,935,685 28,521,280
Environmental 702,215 969,901 - 26,496 - (25,000) 1,496 17,135,888 15,460,780
Amortization of
property and
equipment - - - - - - 4,253 106,541 102,288
3,656,054 3,384,225 6,746 90,849 38,097 42,405 904,027 85,488,693 77,366,290
Tax credits and
mining duties - (1,041,111) 6,144 - - - (188,172) (12,702,889) (11,479,750)
Tata Steel
payment (2,059,666) (1,239,837) - - - - - (17,841,133) (14,541,630)
(2,059,666) (2,280,948) 6,144 - - (188,172) (30,544,022) (26,021,380)
Balance, at
June 30, 2013 25,916,273 15,433,997 2,420,554 4,785,247 1,149,339 4,947,107 3,257,655 57,910,172 54,141,322
23
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