Adriana signs MOUs for Quebec and Brazil projects

Adriana Resources (ADI-V) has signed two memorandums of understanding with a major Chinese steel company.

One MOU relates to Adriana’s Lac Otelnuk project in Quebec’s Nunavik region near Schefferville.

Both companies have agreed to cooperate in bringing the project into production, though a definitive agreement and regulatory approval will be needed.

The project has an indicated resource of 4.29 billion tonnes grading 29.08% iron and an inferred resource of 1.97 billion tonnes grading 29.24% iron.

The most recent resource estimate was filed in the spring of this year.

For the other MOU, the two company’s have agreed to cooperate on the investigation and acquisition of iron ore projects in Brazil.

In the event they buy any new projects, the companies have also agreed to cooperate on the development of Adriana’s proposed deepwater iron ore port facility in the Itacuruca Channel.

Adriana’s subsidiary Brazore, has a 75% interest in a proposed port and transshipment facility. The port would operate up to 20 million tonnes of iron ore per year and ramp up to an eventual 50-million tonnes.

Adriana’s coastal property is just under a square km in size and a railway line and highway pass right through the edge of the property.

Adriana already has a strategic relationship with WorldLink Resources, a major Chinese shipping company that imports and exports coal, iron ore and other dry bulk commodities.

Another company, Seabulk Systems, is working on an engineering proposal for the design of the barge loading terminal, including the site work, railcar receiving, ore storage and reclamation and barge loading.

Adriana shares were up 20% or 6¢ at noon in Toronto on a trading volume of 351,000 shares.