Cyclone Metals Ltd CEO Paul Berend talked with Proactive about the company’s recent agreement with Vale for its Iron Bear project in Canada’s Labrador Trough.
Berend explained that the deal sees Vale providing up to $138 million in funding, structured as a joint venture with Cyclone Metals. The first phase will see $18 million allocated for pre-feasibility studies, First Nations engagement, and environmental work. If successful, Vale will invest a further $20 million, bringing its stake to 75%. Once a decision to mine is made, Vale can either carry Cyclone to production or buy out its stake at fair value.
The Iron Bear project is a large magnetite resource with an estimated 16 billion tonnes at 29.3% Fe. Berend highlighted that its location near infrastructure, access to renewable energy, and high-quality ore grade make it an attractive asset. He noted that the project has the potential to produce some of the cleanest, lowest-carbon iron ore products globally.
Looking ahead, Cyclone Metals plans to fast-track development, with key economic and technical updates expected in the next 6-8 weeks. A significant drilling campaign of 24,000 meters is scheduled between June and December next year, alongside advanced engineering studies. The company aims to reach a decision to mine within 3-5 years, with a strong focus on sustainability and First Nations engagement.
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