Advanced Explorations Inc., the Toronto-based company seeking to develop the Roche Bay iron ore project near Hall Beach, Nunavut, announced that it has formed a strategic joint venture with a Chinese private wealth fund.
The new subsidiary will be called Savik Iron Mines, the company said in a statement issued Tuesday.
According to the announced agreement, the wealth fund Parkson Star Ltd. (HK) of China will pay $600,000 (US $551,369) to Advanced Explorations for an 80 percent equity share in Savik, while Advanced Explorations will retain 20 percent ownership until production at the mine begins.
Savik will assume $13.3 million (US $1.19 million) of Advanced Explorations' debt, under terms of the agreement.
Advanced Explorations has described its Roche Bay and Tuktu projects, both on Nunavut's Melville Peninsula, as being part of one of the biggest iron-ore districts in the world.
Advanced Explorations says it hopes to reach terms to sell iron directly from Nunavut to world markets.
China is the world's biggest iron-ore consumer.
This story is posted on Alaska Dispatch as part of Eye on the Arctic, a collaborative partnership between public and private circumpolar media organizations.