Toronto-listed Century Global Commodities has announced that its Joyce Lake direct shipping ore (DSO) project – the most advanced in its portfolio – will be spun out and listed on the Australian bourse to raise funding to advance the project towards development.
CEO Sandy Chim says the ASX was chosen as the market understands DSO projects well.
“Joyce, being such a project in a tier one jurisdiction like Canada, is expected to perform favourably in the ASX compared to other capital markets,” she comments.
Century has mandated Perth-based corporate advisory and investment bank Empire Capital Partners to execute the spin-out.
Empire will identify a pre-initial public offering (IPO) investor or group of investors to raise initial seed funding in a special purpose vehicle holding 100% of Joyce. Thereafter, Empire will be the lead manager of the IPO transaction on the ASX.
Joyce Lake, in Newfoundland and Labrador, close to the town of Schefferville, is serviced by a rail link directly to ocean shipping iron-ore ports at Sept-Iles. A new 43 km dedicated haul road will be used from the Joyce Lake project to the rail link. It has completed feasibility and permitting studies and can be brought to production within about 30 months.
Following an expenditure of more than C$40-million, the project has total proven and probable reserves of 17.72-million tonnes at 59.71% iron based on estimates included in the 2015 National Instrument 43-101 feasibility study of 2015.
The study contemplates an openpit mine of 2.5-million tons a year over a seven-year life-of-mine producing both lump and fines from crushing and screening with no tailings generated. The study financial analysis used a base case long term price of $95/t, a capital cost of C$259.6-million and operating costs of C$58.25 FOB the port at Sept- Iles, which generated a net present value of C$61.4-million after tax.