Iron Bear Resources regains full control of iron ore project as Vale exits

Iron Bear Resources Limited (ASX: IBR) has announced that Vale will not proceed to Phase 2 of their Development Agreement. As a result, Iron Bear will retain 100% ownership of its flagship iron ore project. The company stated that Vale’s decision was due to internal corporate developments rather than the merits of the project.

During Phase 1, Iron Bear successfully utilized US$18 million from Vale to de-risk the project without shareholder dilution. The company’s Pre-Feasibility Study (PFS) indicates the asset has an unleveraged NPV of US$9.0 billion and an Internal Rate of Return (IRR) of 15.2%.

Iron Bear currently holds A$15.3 million in cash and intends to pursue ‘Project of National Significance’ status in Canada to expedite permitting. Future plans include completing value optimisation studies by November and appointing a financial advisor to secure project financing.