Name of the Project
Iron Bear iron-ore project.

Location
Near the provincial border of Newfoundland and Labrador, as well as Quebec, Canada.

Project Owner/s
Australia-based mineral investment, exploration and evaluation company Cyclone Metals.

In February 2025, Cyclone Metals signed a binding commercial agreement with Brazilian multinational corporation Vale regarding the joint development of the project. 

Under the agreement, Vale will contribute $18-million during Phase 1 of the Iron Bear project to complete a prefeasibility study, undertake a drilling programme to enhance the resource, and conduct environmental baseline studies. 

Upon completion of Phase 1, Vale has the option to activate Phase 2, during which it would earn a 30% interest in the Iron Bear joint venture by funding up to $120-million in development activities. These include the bankable feasibility study, environmental-impact assessments, and Impact Benefit Agreements with First Nations. Vale’s ownership could increase to 75% once the second tranche is spent or if it elects to progress the project to a decision to mine. At that stage, Vale may either acquire the remaining 25% interest at fair value or choose to carry Cyclone through to production with no dilution.

Project Description
The project has a mineral resource of 16.6-billion tonnes containing 29.3% total iron and 18.2% magnetic iron at a cutoff grade of 12.5% magnetic iron.

The project envisages the production of strategic low-carbon direct reduction pellets with excellent physical and metallisation properties and ultralow deleterious elements.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Cyclone Metals has received a further A$5.17-million from Vale. This is the third tranche of funding under the binding development agreement for the joint advancement of the project.

The payment forms part of Vale’s Phase 1 contribution and underscores the major miner’s ongoing commitment to the project.

Cyclone has noted that the new funds add to its already strong cash position, boosted recently by the A$14.3-million generated from the sale of its shareholding in European Lithium.

The company’s subsidiary, Iron Block 103 Corporation, currently holds about A$12.6-million earmarked for Iron Bear’s development, while Cyclone’s total cash reserves now stand at A$28.2-million, including A$15.6-million in unallocated funds.

“The payment of the third tranche of funding illustrates the continued confidence that Vale has in the Iron Bear project and the excellent operational progress achieved over the last quarter,” Cyclone CEO Paul Berend has said.

“In addition, Cyclone has a very strong cash position, which means that current shareholders are protected from dilution in the foreseeable future.”

Key Contracts, Suppliers and Consultants
Hatch (renewable-energy study).

Contact Details for Project Information
Cyclone Metals, tel +61 8 9380 9555 or email ir@cyclonemetals.com.