Canadian company Oceanic Iron Ore Corp has engaged CapitalAsia Investment Holdings Group as a strategic advisor in respect of select strategic partnering initiatives focused in China. The company has also arranged a non-brokered financing of Can $3 million subscribed for by Sino-Canada Natural Resources Fund.
Oceanic intends to use the proceeds of the financing to fund its ongoing negotiations with potential strategic partners, studies in connection with the feasibility study and environmental assessment in respect of the company’s Hopes Advance project in Canada as well as for general claims maintenance, and corporate and working capital purposes.
Sino-Canada Natural Resources Fund managing partner Thomas Lau says, “Our investment in Oceanic provides us with excellent exposure to iron ore, which we believe will continue to have strong demand dynamics in Asia and other emerging economies developing infrastructure and focused on urbanization.
“Run by an experienced executive team led by Steven Dean, the Hopes Advance project has unique advantages, including an expected life of mine operating cost per tonne of about $30, which makes it one of the best projects in the world. We are looking forward to offering our insights in respect of the Chinese market to Oceanic in order to create mutual benefit for both Canada’s and China’s economies.”
Oceanic’s chairman Steven Dean says, “We are pleased to have established an advisory relationship with CapitalAsia in respect of our strategic partnering initiatives focused in China and also look forward to welcoming Sino-Canada Natural Resources Fund as a new investor in Oceanic upon the closing of this transaction. We value Sino-Canada’s endorsement and look forward to their participation on our Strategic Advisory Committee as we focus on both securing a strategic partner for the Hopes Advance project and advancing certain critical components of the feasibility and environmental assessment work.”
Sino-Canada Natural Resources Fund is a Cayman Islands registered private equity fund focused on investments in Canadian listed and private companies that develop and operate natural resource projects (mining, oil & gas, forestry) worldwide. Sino-Canada Fund is managed in Hong Kong on behalf of private and institutional investors from China.
Oceanic is a feasibility stage company focused on the development of its Hopes Advance, Morgan Lake and Roberts Lake iron ore development projects on the coast in the Labrador Trough in Quebec, Canada. In November 2012, the company published results of a pre-feasibility study for the Hopes Advance project, outlining a base case pre-tax NPV of $5.6 billion over a 30 year mine life, supported by an NI 43-101 proven and probable reserve of about 1.36 billion tonnes and a life of mine operating cost of around $30/tonne, making it one of the lowest cost development projects globally.