December 29, 2017 11:02 PM
Even though they cleared a big legal hurdle last Friday by emerging from bankruptcy, Tom Clarke and Chippewa Capital Partners still have much to do. Especially if they want the state's mineral leases reinstated.
The DNR is willing to reinstate the state's mineral leases at the former Essar site to them. But only if certain conditions are met.
According to the settlement agreement between the DNR and Chippewa, those conditions are:
1) Make payments to contractors by December 31st.
2) Extend a $4 million dollar letter of credit to the DNR through December 31, 2018.
3) Execute an off-take agreement for a minimum of 4.2 million tons of taconite pellets by May 31, 2018.
4) Execute a binding construction contract with Kiewit or other acceptable contractor for completion of the pellet plant.
5) Secure mineral interests from Superior Minerals by June 30, 2018.
6) Close on financing by June 30, 2018.
As we've reported Cleveland-Cliffs controls a significant portion of private mineral rights at the site in Nashwauk.
Updated: December 29, 2017 11:02 PM
Created: December 29, 2017 04:49 PM
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