LONDON ArcelorMittal SA has signed an iron ore exploration agreement with junior miner Evrim Resources Corp., with the aim of developing projects in Mexico.
Mexican subsidiary ArcelorMittal Servicios Minerometalurgicos de Occidente SA de CV on Feb. 12 agreed to search for iron ore projects in Mexico with Canada-listed junior miner Evrim Resources, the Canadian miner said.
Under the terms of the five-year agreement, Arcelormittal and Evrim will jointly fund exploration programs to search for iron ore prospects "of merit" in Mexico.
"This agreement offers Evrim a unique opportunity to quickly advance projects for long-term sustainability," Evrim president and chief executive officer Paddy Nicol said.
The development of any resulting projects will be solely funded by ArcelorMittal Mexico, which will earn a 100-percent interest in any project, Vancouver, British Columbia-based Evrim said.
The two companies have agreed to a firm commitment for the first two years of the deal, Evrim said.
ArcelorMittals iron ore shipments rose 54.4 percent in the fourth quarter to 10.3 million tonnes, helping its mining division post $582 million in earnings before interest, taxes, depreciation and appreciation (Ebitda) for the period.
A version of this article was first published in AMM sister publication Steel First.