New Millenium Announcing Further Cash Call from TSMC
CALGARY, Alberta, Canada (June 12, 2015) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX: NML) (OTCQX: NWLNF) announced today that it has received a further equity cash call, approved by the Board of Tata Minerals Steel Canada Ltd. (“TSMC”), to fund certain capital expenses for the DSO and Howse projects (“Projects”) operated by TSMC totaling $60.9 million. Together with the cash call previously announced by NML (please see news release NR 15-04 dated April 10, 2015), the cash calls to date total approximately $83.9 million and cannot be funded in view of the Company’s limited internal cash resources and financing sources available.
The cash calls will result in a dilution of the Company’s interest in TSMC from the current 20%. As per the Joint Venture Agreement, NML has a 20% equity interest in TSMC as a free carry up to a threshold of $300 million for certain capital expenditures specified under the Joint Venture Agreement. The previously announced discussions between NML and Tata Steel to review and conclude the dilution process in accordance with the Joint Venture Agreement at this time have reached an impasse.
NML’s CEO, Robert Patzelt said, “Discussions between NML and Tata Steel to review and conclude the dilution process have been ongoing, but certain remaining issues between the parties are complex and NML is exploring the next steps that are available to the parties.”