Iron Bear Resources (ASX:IBR) is set to retain 100% ownership of its Iron Bear Project in Canada after Vale (NYSE:VALE) completed phase one of their development agreement and opted not to proceed to phase two.
The company expects a final notice terminating the agreement to be lodged shortly, which will leave the project fully unencumbered.
Iron Bear says Vale‘s decision stems from internal corporate developments rather than project specifics.
Managing Director Paul Berend says the insights and expertise shared by Vale’s top engineers have allowed Iron Bear to achieve ‘spectacular’ results at ‘pilot plant scale’.
He adds that the Prefeasibility Study (PFS) was also materially improved by Vale’s inputs, which resulted in an ‘economically compelling’ PFS.
“We are grateful for the technical and financial contributions that Vale made to the Iron Bear Project,” Berend says.
“We are sad that this productive relationship with Vale is at an end. However, Iron Bear’s retention of 100% ownership unlocks exciting opportunities to secure future funding from industrial partners, institutional investors or off takers, leveraging a much more advanced and de-risked project than in February 2025 when we signed the development agreement.”
Iron Bear deployed Vale’s US$18 million ($25.24 million) investment to de-risk the asset without shareholder dilution. The company holds $15.3 million in cash with no near-term capital raise required, while substantial phase one drilling costs can be deferred by up to two years.
A PFS released in July delivered an unleveraged net present value of US$9 billion at an 8% weighted average cost of capital and an internal rate of return of 15.2%. Planned production is set to scale to 23 million tonnes per annum, including 18 million tonnes of direct reduction pellets grading roughly 71% iron with combined silica and alumina content under 1.2%.
Iron Bear plans to issue an updated PFS by November to reflect improved financial metrics.
The company also intends to register the environmental impact document, finalise a formal cooperation agreement with an indigenous group, appoint a tier-one financial adviser, and seek Project of National Significance status under Canada’s Bill C-5 in the December quarter.
Iron Bear Resources is an emerging iron ore developer focused on developing its flagship project in the Labrador Trough, Canada. It also owns assets in New Zealand and Western Australia.
Write to Paula Fabe at Mining.com.au
Images: Iron Bear Resources
