Adriana Resources Inc.
Adriana Resources Inc. Adriana Resources Inc. Adriana Resources Inc. Adriana Resources Inc. Adriana Resources Inc.
Adriana Resources Inc.


On January 12, 2012 successfully closed the transactions contemplated by the Joint Venture Agreement (the "JV Agreement"), with a wholly owned subsidiary of WISCO International Resources Development & Investment Limited ("WISCO") to engage in the development and operation of Adriana's Lac Otelnuk and December Lake iron ore properties in Nunavik, Québec (together, the "Lac Otelnuk Project").

Pursuant to the JV Agreement, WISCO has funded an aggregate of CDN$91,633,611 of which CDN$51,633,611 was paid directly to Adriana and the remaining CDN$40,000,000 was injected into a joint venture company, Lac Otelnuk Mining Ltd. ("LOM"). Adriana has transferred its interest in the Lac Otelnuk Project into LOM. WISCO has acquired a 60% interest in LOM while Adriana holds the remaining 40% interest. WISCO has agreed to use commercial best efforts to assist LOM to obtain project financing for 70% of the development and construction costs for the Lac Otelnuk Project, the size and scope of which will be determined by a bankable Feasibility Study. Under the terms of the JV Agreement, WISCO may provide dilution protection to Adriana by providing funding assistance of up to a maximum of CDN$200,000,000 for a term of up to 12 months in the event that Adriana has difficulty in funding its share of any cash call prior to the achievement of commercial production. Adriana and WISCO have agreed to purchase from LOM all the production from the Lac Otelnuk Project at fair market value in proportion to their respective equity interests. Mr. Palmiere has been appointed as the CEO of LOM and Adriana has the right to appoint two of the five directors of LOM.



About WISCO

WISCO is one of the major subsidiaries of Wuhan Iron & Steel (Group) Corporation (the "WISCO Group"), headquartered in Wuhan in the province of Hubei in the People's Republic of China. The WISCO Group is one of the "Big Three" Chinese state-owned integrated iron and steel company. In 2010, the WISCO Group had an annual output of 36 million tonnes of steel. The WISCO Group's portfolio of business activities includes mining, coking, sintering, iron making, steel making, rolling and associated utilities.


 
Adriana Resources Inc.
Adriana Resources Inc.
Design by Adnet Communications Inc.Adriana Resources Inc.
Chinese English