India Globalization Capital Inc announced that it has closed on a strategic partnership agreement to provide iron ore to Chinese steel mills.
IGC entered into a strategic partnership agreement with Chinese iron ore mine H&F Ironman Ltd to source ore from India. Ironman is a Chinese company that mines ore in Inner Mongolia, which it sells to steel mills in North East China.
Ironman has several steel mills as customers. To memorialize this strategic partnership, Ironman will purchase USD 250,000 in IGC stock at a price of USD .35 and IGC will buy a similar amount of stock in H&F Ironman.
Under the agreement IGC will source ore from India and ship the ore to H&F Ironman and their customers in China. There are two approaches that are contemplated. In the first, IGC will ship 60+% Fe ore to China, which will be sold in China. In the second approach IGC will ship low grade ore to China, which Ironman will process through its beneficiation plant and convert it to higher grade ore and sell that to its customers.