New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

November 06, 2009 08:47 ET

New Millennium Capital Corp. Announces Signing of the Joint Venture Agreement With Tata Steel for the DSO Project and Provides an Update on Feasibility Study Status

CALGARY, ALBERTA--(Marketwire - Nov. 6, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

New Millennium Capital Corp. ("NML" or "the Corporation") (TSX VENTURE:NML) announced today that NML and Tata Steel's wholly owned subsidiary Tata Steel Global Minerals Holdings Pte Ltd (Tata Steel) of Singapore have signed a Joint Venture Agreement (JVA) to advance the development of the DSO Project. Under terms of the JVA, Tata Steel and NML agree to form a Joint Venture Company (JVC) after Tata Steel has delivered to NML a notice of joint venture investment arising after the feasibility study is completed by NML and delivered to Tata Steel. A public signing ceremony took place in Jamshedpur, India, and was attended by New Millennium President and CEO, Robert Martin and Tata Steel's Managing Director, Mr. H.M. Nerurkar.

Robert Martin said, "With this joint venture agreement we are closer to seeing the DSO Project enter production and this will help advance the DSO Project when final approval is made. We are working closely with Tata technical personnel, both in Canada and India, to complete all work that is expected to support a positive project decision. New Millennium's project complements Tata Steel's strategy to increase self sufficiency in raw materials with supplies from captive sources for their wholly owned UK and European subsidiary."

Based on the JVA, upon closing subsequent to notice of the joint venture investment being delivered, Tata Steel will own 80% of the JVC (with NML holding 20%) and will arrange up to $300 million for the capital of the project through suitable debt and equity. Tata Steel will reimburse NML for 80% of the feasibility study cost. The feasibility study, which is currently being developed in co-operation with Tata Steel's technical personnel, will outline the development plan of the mining project. The JVC will carry out project implementation in accordance with the JVA. Tata Steel will purchase 100% of the products from the JVC at benchmark prices set for similar products for the life of the mine.

Direct Shipping Ore (DSO) feasibility study Update

NML and Tata have determined that the DSO feasibility study with a high level of confidence will be concluded as soon as most outstanding third party agreements are completed thereby allowing Tata to make a timely production decision. NML and Tata believe that these agreements can be satisfactorily negotiated and that upon completion the currently anticipated production start date of Q2, 2011 can be maintained.

Mr. H. M. Nerurkar, Managing Director of Tata Steel, said "Tata supports New Millennium's efforts to advance the DSO Project to production. We are now awaiting the feasibility study with most of the matters resolved and with capital investment and operating costs which reflect a technically feasible and financially viable project."

Negotiations are advanced on railway, terminal and First Nation agreements and the Corporation believes that evidence of clear mutual benefits will lead to satisfactory outcomes. These will be reported in future news releases as each agreement is completed.

About New Millennium

New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, the world's eighth largest steel corporation, owns 19.9% of New Millennium and is the Corporation's largest shareholder and strategic partner. Tata has an exclusive option to participate in the DSO Project, a commitment to take the resulting production, and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KeMag Project (see news release 08-17, October 1, 2008 and news release 09-11, June 30, 2009). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13, July 5 2006 and 07-11, July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01, January 15, 2009).

The Corporation's DSO project contains 52.5 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.9% Fe, 3.5 million tonnes of measured and indicated Mineral Resources at an average grade of 59.0% Fe, 5.8 million tonnes of Inferred Resources at an average grade of 55.8% Fe and about 40.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 10, 2009 and news release 09-05, March 4, 2009). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon.

The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit www.nmlresources.com, www.tatasteel.com and www.corusgroup.com.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words 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" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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 statements.

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