VANCOUVER (miningweekly.com) – Junior project developer KWG Resources has undertaken to strike an equal partnership with the Marten Falls First Nation to kick-start infrastructure development in the remote emerging mining district known as the Ring of Fire, in Northern Ontario.
The parties envision the establishment of large-volume underground chromite mining operations that will use a railroad to deliver ore to port for shipment to global markets for further processing.
The parties announced Tuesday that they will travel to China in mid-May to establish interest in long-term offtake and financing arrangements. They will also meet with China Railway First Survey & Design Institute Group to discuss details of the feasibility study it prepared for KWG last year. The proposed railroad traverses the traditional territories of the Marten Falls, Webequie and Aroland First Nations.
KWG estimates the capital cost of creating the mining operation and its railroad at about $4-billion. The parties have requested Ontario's Ring of Fire Infrastructure Development Corporation to indicate its willingness to provide a $1-billion guarantee as consideration for project financing terms from Chinese lenders.
KWG said the partnership is envisaged to include the Aroland and Webequie First Nations, as well as the more remote members of the Matawa Council of First Nations. An offer of partnership will also be extended to Ring of Fire mineral claim holders Noront Resources, Fancamp Exploration, Bold Ventures and Probe Metals, the company said in a news release.
Edited by: Creamer Media Reporter
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