Consolidated Thompson Iron Mines Limited
TSX : CLM

Consolidated Thompson Iron Mines Limited

May 06, 2010 07:00 ET

Consolidated Iron Mines Filed Its 2010 First Quarter Interim Report

MONTREAL, QUEBEC--(Marketwire - May 6, 2010) - Consolidated Thompson Iron Mines Ltd. (TSX:CLM) ("CLM" or the "Corporation", or "Consolidated Thompson") is pleased to announce the following highlights from its unaudited interim consolidated financial statements and MD&A for the first quarter ended March 31, 2010 that were filed on SEDAR:

  • Mine site development is completed and over 200,000 tonnes has been produced and stockpiled at the mine site. As of March 31, 2010, a total of $ 514.1 million had been spent on the development of the Bloom Lake mine.
  • CLM continued its rapid development of the railroad, completed shortly after the first quarter, and Pointe-Noire port infrastructures during the first quarter of 2010. As of March 31, 2010, a total of $ 169.8 million had been spent on this infrastructure.
  • As of March 31, 2010, the Corporation had total cash resources of $184 million.
  • The Corporation closed two successful financings in January 2010. The proceeds were used to fund the costs of completing the construction of the Bloom Lake project and for general corporate purposes:
    • US$ 50 million unsecured 5 year credit facility carrying a fixed 5% annual interest rate with SK Networks; the third largest industrial conglomerate of Korea;
    • US$ 100 million senior secured bonds with Marret Asset Management Inc.
  • Other First Quarter 2010 milestones included:
    • In January 2010, the Corporation entered into a 10-year off-take agreement of 1 million tonnes per year at market price with SK Networks.;
    • In February 2010, the Corporation signed with Arnaud Railway Corporation, a subsidiary of Wabush Mines, a ten-year rail transportation agreement to haul the iron ore concentrate from Arnaud junction, where the railway connects to the QNS&L railway, to the Corporation's offloading facilities located at the Port of Sept-Iles at Pointe-Noire.
  • Announcements subsequent to the end of the First Quarter 2010:
    • The Corporation was granted the operational permit for the Bloom Lake 31-km railway;
    • The Corporation signed a confidential agreement to sell and deliver 250,000 tonnes of iron ore concentrate in May 2010 with the possibility of an additional 200,000 in June 2010. Railcars are being loaded at the mine site and delivered regularly at Arnaud Junction.

"We are very excited and proud to be a world-class iron ore producer" declared Richard Quesnel, President and Chief Executive Officer of Consolidated Thompson. "All the work performed by the employees and contractors and the capital invested in three years to make this project a reality is phenomenal.''

"Consolidated Thompson's timing into the iron ore export market as a producer could not be better given the market demand for our world-class concentrate" said Brian V. Tobin, Executive Chairman of the Board of Directors.

Mr. Brian V. Tobin, Executive Chairman of the Board of Directors, Mr. Richard Quesnel, President and Chief Executive Officer and Mr. François Laurin, Chief Financial Officer of the Corporation invite investors, financial analysts and journalists to take part in a conference call the same day to discuss the update on the Bloom Lake project.

Thursday, May 6 at 2:00 p.m. ET.
Dial 416-695-7806 or
  888-789-9572 for North America

Name of conference: Consolidated Thompson

Webcast: www.consolidatedthompson.com

The archived call will be available from 3:00 p.m. ET on May 6, 2010 until 11:59 p.m. ET on May 13, 2010 at 514-861-2272 or 800-408-3053, access code 4512787 followed by # and on the Corporation's website.

Information on Consolidated Thompson Iron Mines Limited

Consolidated Thompson Iron Mines Limited is a development and exploration mining company. The Company is presently developing at the expected initial rate of 8.0 million tonnes per year of its Bloom Lake world class iron ore deposit located in the Quebec/Labrador trough. The quality and size of the Bloom Lake and Peppler/Lamelee deposits have the potential to expand and advance these projects and develop other opportunities in the iron ore industry.

Caution regarding forward-looking statement

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the closing of the Transaction; capital required to complete the development of the Bloom Lake mine and timing of such requirements; the conclusions, parameters and assumptions underlying current mine plans, the development potential and timetable of Bloom Lake project; capital and operating expenditures; iron ore prices; permitting time lines and permitting; government regulation of mining operations; environmental risks and the impact of management appointments; mineral reserve and resource estimates; the ability to realize estimated mineral reserves and to convert mineral resources into mineral reserves; terms and costs of future exploration; mineralization projections; receipt of all necessary approvals; the parameters and assumptions underlying the mineral resource estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bloom Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the realization of such estimates as are set out in CLM's feasibility study. Capital and operating cost estimates are based on extensive research of the Company, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out in CLM's feasibility study. Production estimates are based on mine plans and production schedules, which have been developed by the Company's personnel and independent consultants. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Consolidated Thompson to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks described in the annual information form of the Company posted under the profile of the Company on SEDAR at www.sedar.com. Although management of Consolidated Thompson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Consolidated Thompson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information

  • Consolidated Thompson Iron Mines Limited
    Richard Quesnel
    President and Chief Executive Officer
    (514) 396-6345
    or
    Consolidated Thompson Iron Mines Limited
    Francois Laurin
    Chief Financial Officer
    (514) 396-6345