Altius pairs with Cliffs

Well-respected for its project generation work in Newfoundland and Labrador, Altius Minerals (als-t) has entered into an exploration alliance with Cliffs Natural Resources (clf-n) covering ferro-alloy metals within specific areas of the province.
With the goal of identifying new grassroots exploration targets, Cliffs has agreed to fund Altius’ regional and generative exploration work to the tune of $1.8 million over a two-year period. Joint-venture prospects will initially be held on a 50-50 basis by Altius and Cliffs, subject to a 1% net smelter return (NSR) royalty in favour of Altius.
Cliffs will have the option to increase its participating interest to 70% by incurring $4 million in exploration expenditures, which is to include at least 3,000 metres of drilling.
By completing a bankable feasibility study, Cliffs can up its interest to 90%.
Exploration work under the alliance is already targeting nickel-iron alloy minerals and chromite in ultramafic complexes across Newfoundland. Altius has staked 3,929 claims covering 982 sq. km over areas of specific interest. Prospecting, rock sampling and mineralogical studies are underway.
With 28.7 million shares outstanding and $200 million in cash and liquid investments, Altius is in a strong financial position. It owns an effective 0.3% NSR royalty in the producing Voisey’s Bay nickel mine in Labrador and has many exploration agreements, principally in Eastern Canada.
At presstime, Altius was trading at $13.84 in a 52-week range of $7.51-$14.79.