Vale (NYSE:VALE) has paid Cyclone Metals (ASX:CLE) US$6.3 million ($10 million) towards its phase one contribution for the joint development of its Iron Bear iron ore project located in Canada.
On 17 February 2025 a binding development agreement was executed with Vale. As part of the agreement, total phase one contribution is US$18 million with the funds allocated to de-risk Iron Bear.
With the anticipated first tranche of $10 million now being received, Cyclone Metals will receive the complement contribution in quarterly payments.
CEO Paul Berend says the Vale payment is a great milestone and provides the company with the necessary funds to develop the Iron Bear project.
“We are planning a large drilling program of 24,000m between June and November this year, which is very exciting,” the CEO adds.
Write to Adam Orlando at Mining.com.au
Images: Cyclone
