New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

October 26, 2010 07:00 ET

New Millennium Capital Corp. Announces Establishment of Joint Venture Company With Tata Steel to Advance the DSO Project

CALGARY, ALBERTA--(Marketwire - Oct. 26, 2010) -

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

New Millennium Capital Corp. ("NML" or "the Company") (TSX VENTURE:NML) announced today that in accordance with the terms of the Joint Venture Agreement (JVA) signed on November 6, 2009 (NR 09-14) with Tata Steel's wholly owned subsidiary Tata Steel Global Minerals Holdings Pte Ltd (Tata Steel), the Joint Venture Company (JVC) has been incorporated.

The JVC, named Tata Steel Minerals Canada Ltd, will acquire all of the DSO mining claims and related assets, carry out detailed engineering and construction of facilities and will be responsible for the operations of the DSO Project. At closing, Tata Steel will own 80% of the JVC and NML the remaining 20%. NML will also be reimbursed for 80% of the DSO Project costs incurred to closing. 

Robert Martin, NML CEO and President, said "With the formation of Tata Steel Minerals Canada Ltd., New Millennium has taken another important step towards achieving its goal of becoming an iron ore producer. This joint venture demonstrates New Millennium's ability to successfully commercialize our mineral assets. ."

In accordance with the JVA, Tata Steel has appointed four Directors to the JVC Board:

Mr. Partha Sengupta : Vice President, Raw Materials, Tata Steel, and a Director of NML.

Mr. Rajesh Sharma: Executive In Charge, Southern Africa, Tata Steel.

Mr. Dinesh Shastri : General Manager, Global Mineral Resources, Tata Steel.

Mr.Sandip Biswas : Group Head Corporate Finance and Treasury, Tata Steel.

NML has appointed one Director, being Mr. Roy Hudson, currently Secretary and a Director of NML.

About New Millennium

The Corporation 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, one of the top 10 steel producers of the world, owns 27.4% of New Millennium and is the Corporation's largest shareholder and strategic partner.

Tata has exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production, and has an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag 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); KéMag 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).

NML's DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8%Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 11, 2009 and news release 09-05, March 4, 2009, news release 09-16, December 9, 2009 and news release 10-12 dated July 8, 2010). 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 Company'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.tatasteeleurope.com.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • New Millennium Capital Corp.
    Robert Martin
    President & CEO
    (514) 935-3204
    or
    New Millennium Capital Corp.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927