Century Iron Mines Corporation (“Century Iron” or the “Company”) and WISCO International Resources Development & Investment Limited (“WISCO International”) completed the formation of their joint venture for Century Iron's Sunny Lake iron property (the “Sunny Lake Project”).
The formation of the joint venture was completed further to the joint venture agreement dated December 19, 2011 (the “Sunny Lake Joint Venture Agreement”) between Century Iron, Century Iron's subsidiary 0849873 B.C. Limited (“Century”), WISCO International and WISCO Canada Sunny Lake Resources Development & Investment Limited (“WISCO Sunny Lake”).
The Sunny Lake Joint Venture Agreement contemplates that WISCO Sunny Lake will make an initial aggregate investment valued at $40 million into the Sunny Lake Project, following which it will fund its pro rata share of ongoing exploration expenses.
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 per cent and WISCO Sunny Lake will own 40 per cent 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.
WISCO International was represented by McCarthy Tétrault LLP with a team led by Joyce Lee, and included Jean-Philippe Buteau, Daphne Yew and Fleur Heck.
Century Iron was represented by McMillan LLP with a team led by Michael Taylor and Stephen Wortley and included Peter Botz and Daniel Lau.