Ming terminates Strange Lake deal

Vancouver-based Ming Financial (MF-A) has decided against acquiring the Strange Lake yttrium property in northwestern Labrador from Iron Ore Co. of Canada (IOC).

Ming says its decision was based on an examination that revealed that the costs of prefeasibility work would exceed the costs outlined in the initial agreement. Contributing to the decision were the results of two third-party reports on unspecified aspects of the project.

In August 1996, the two companies came to an agreement-in-principle, which called for Ming to finance feasibility work and pilot tests, and eventually provide the capital to bring the property into production. Under the agreement, IOC was to have retained a net profits interest.

The Strange Lake deposit was discovered in 1979. In the 1980s, IOC outlined a near-surface deposit containing 50 million tonnes grading 0.38% yttrium, 2.99% zirconium, 0.29% niobium and 0.076% beryllium.