Transactions & Cases Detail
WISCO International completes C$40 million joint venture into the Sunny Lake Project with Century Iron Mines
November 28, 2012
Mining & Metals
40 Million CAD
On November 28, 2012, Century Iron Mines announced that Century Iron and WISCO International Resources Development & Investment have completed the formation of their joint venture for Century Iron’s Sunny Lake iron property. The formation of the joint venture was completed further to the joint venture agreement dated December 19, 2011 between Century Iron, Century Iron’s subsidiary 0849873 B.C., WISCO International and WISCO Canada Sunny Lake Resources Development & Investment.
The Sunny Lake Joint Venture Agreement provides that WISCO Sunny Lake will make an aggregate investment valued at C$40 million into the Sunny Lake Project. The investment will be completed through (i) a reimbursement of Century for certain exploration expenditures incurred on the Sunny Lake Project to date, and (ii) the funding of new exploration expenditures for the Sunny Lake Project. WISCO Canada will reimburse Century for exploration expenses incurred on the Sunny Lake Project from January 13, 2011 to November 28, 2012, after accounting for tax credits received by Century in connection with these exploration expenses and subject to audit. WISCO will on a going forward basis fund new exploration expenses for Sunny Lake until the aggregate of its reimbursement of Century and new exploration expenses funded is valued at $40 million. At that point, Century will own 60% and WISCO Sunny Lake will own 40% of the Sunny Lake joint venture and moving forward each of Century and WISCO Sunny Lake will fund their pro rata share of exploration expenses in accordance with their ownership interests in the Sunny Lake joint venture. The expenses to be reimbursed by WISCO include certain exploration expenses incurred by Century in completing the drilling and related exploration programs at Rainy Lake that led to the initial resource statement on the Full Moon deposit on October 22, 2012.
Century Iron Mines, headquartered in Toronto, Ontario, is an exploration and development company of iron projects in Canada.
WISCO International Resources Development & Investment, headquartered in Wuhan, Hubei, China, a subsidiary of China's Wuhan Iron & Steel, is a key strategic partner for Century Iron Mines. WISCO assists with the financial and technical resources to assist Century Iron Mines with funding and technical expertise for the exploration and development of its projects.
McCarthy Tétrault LLP represented WISCO, as investor, with a team led by Joyce Lee, and including Jean Philippe-Buteau, Fleur Heck, and Daphne Yew.