CALGARY, ALBERTA–(Marketwired – June 14, 2016) – New Millennium Iron Corp. (“NML” or the “Company”) (TSX:NML) announced today several cost reduction measures designed to preserve cash and better align the Company’s operations with ongoing activities and current market conditions.
The measures include a workforce reduction of 11 full-time employees, including two at the executive level, effective immediately. Overall, this represents about 60% of the Company’s total 19 person workforce.
Robert Patzelt, NML’s President and CEO, said, “We are very disappointed that market circumstances have forced another downsizing of our organization with the loss of dedicated and long-serving employees whose efforts have greatly advanced NML’s projects and development. We are grateful for their many contributions and wish them every success in their future endeavours.”
The net annualized payroll savings will be approximately $1,350,000. Since October 2014, NML’s workforce has been reduced by 80% with resulting annualized payroll savings of approximately $3,542,000.
Other measures to be implemented are the closure of NML’s offices in St. John’s, NL, Sept-Îles, QC, and Schefferville, QC, all by the end of September 2016. The Company closed its Labrador City, NL office in 2014 and reduced office space in Montreal, QC in 2015. In addition to lowering overhead costs, NML has greatly reduced its reliance on consulting services.
Through a further, strategically important arrangement, the level of exploration spending over the next five years necessary to preserve NML’s mining claims will reduce by as much as $3,373,000 without compromising any of the Company’s mineral resources.
These latest initiatives provide NML with sufficient working capital to support activities through 2018 at present expenditure levels, and other steps are being taken to extend this timeframe.
Howard Lutley, NML’s Chairman, added, “First, I very much share Robert’s sentiments regarding our departing employees and thank them on behalf of the Board of Directors. I also wish to assure shareholders that we have retained the expertise and resources necessary to protect NML’s assets, to carefully advance development and financing activities, and to nurture the Company’s diverse relationships across industry, government and communities.”
About New Millennium
The Company is a Canadian iron ore development company with an extensive property position in Canada’s principal iron ore district, the Labrador Trough, straddling the Province of Newfoundland and Labrador and the Province of Québec, in the Menihek Region around Schefferville, Québec. The Company’s project areas are connected via a well-established, heavy-haul rail network to the Port of Sept-Îles, Québec, where NML is among a group of companies that has advanced funds to secure capacity at a new deep-water iron ore loading dock.
In addition to having a management team experienced with the technical, environmental and commercial aspects of Labrador Trough ores, the Company is in a strategic partnership with Tata Steel, a global steel producer and industry leader. Tata Steel owns approximately 26.2% of the Company and is the Company’s largest shareholder. Together through Tata Steel Minerals Canada Ltd., which is owned 94% by Tata Steel and 6% by the Company, the two companies have developed a direct shipping ore (“DSO”) project that is producing and shipping sinter fines.
Beyond the DSO project, the Company offers further development potential through seven, long-life taconite properties capable of producing high quality pellets and pellet feed to service the requirements of steel makers with either blast furnace or direct reduced iron making operations. Two of these deposits — LabMag and KéMag – were the subject of large-scale development feasibility studies carried out by the Company and Tata Steel and published in March 2014.
With these feasibility study results as a foundation and all seven taconite properties now explored to a NI 43-101 compliant resource, the Company can optimize its taconite development strategy and is currently focused on a smaller market entry project.
For further information, please visit www.NMLiron.com, www.tatasteelcanada.com and www.tatasteel.com.
Dean Journeaux, Eng. and Thiagarajan Balakrishnan, P. Geo. are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.
Forward-Looking Statements
This news release contains certain forward looking statements and forward looking information (collectively referred to herein as “forward looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward looking statements. Forward looking information is often, but not always, identified by the use of words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may”, “projected”, “sustain”, “continues”, “strategy”, “potential”, “projects”, “grow”, “take advantage”, “estimate”, “well positioned” or similar words suggesting future outcomes. In particular, this news release may contain forward looking statements relating to future opportunities, business strategies, mineral exploration, development and production plans and competitive advantages.
The forward looking statements regarding the Company are based on certain key expectations and assumptions of the Company concerning anticipated financial performance, business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimated results in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Company consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in the forward looking statements, including among other things: inability of the Company to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, including business competition, changes in government regulations or in tax laws; general political and social uncertainties; commodity prices; the actual results of exploration, development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations; and lack of qualified, skilled labour or loss of key individuals; as well as those factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, along with the Company’s annual information form, all of which are filed and available for review on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list is not exhaustive.
The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this news release are made as of the date of this news release and the Company does not undertake and is not obligated to publicly update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
Robert Patzelt, Q.C.
President & Chief Executive Officer
(514) 935-3204 ext. 370
New Millennium Iron Corp.
Ernest Dempsey
Vice-President, Investor Relations and Corporate Affairs
(514) 935-3204 ext. 349
New Millennium Iron Corp.
Andreas Curkovic
Investor Relations
(416) 577-9927
