Tom Clarke: We Have an Agreement for Pellets

Renee Passal
Updated: May 29, 2018 10:52 PM

Tom Clarke said they have met a significant condition set by the DNR, in order to get the state's mineral leases re-instated at the Mesabi Metallics project site in Nashwauk.

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"We have a full off-take agreement for all 7 million tons of pellets from very, very credible parties. It's a purchasing syndicate, a Switzerland-based syndicate. It's a consortium of international pellet purchasers and traders, all of which are very large and very significant players," he explained further.

They also plan on announcing a contractor who will finish the mine and plant. The DNR's deadline for that agreement is Thursday. "We look forward to building this thing," Clarke added. The goal, he said, is to begin construction in July.

He said they continue negotiating final pieces of the financing. "We are highly confident we'll have the full amount of financing."

Clarke calls a recent legal move, "A bad faith claim." Last Friday, four companies filed a petition for involuntary bankruptcy. The petition claims ERP Iron Ore, which Clarke also leads, owes $4.8 million dollars in mineral royalties or electric service. ERP bought the former Magnetation assets.

When asked about that, Clarke said, "The good news is, three of the five claims were paid this morning by wire transfer. A fourth claim will be paid tomorrow by wire transfer. We have been negotiating, and fully expect to settle the fifth claim, so there won't be any unpaid claims."

He added, "We certainly will defend ourself vigorously."

As for ERP and the former Magnetation site, he said they have no plans at this moment to restart mining there. "All of our focus is on Nashwauk."


Renee Passal

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