On February 18, 2025, Australian miner Cyclone Metals signed a binding commercial agreement with Brazilian mining giant Vale S.A. to form a joint venture (JV) for the Iron Bear iron ore project in Canada. The deal is valued at up to USD $138 million (approximately CAD $188 million at the time of signing), and involves a two-phase structure enabling Vale to earn up to a 75% stake.

In the first phase, Vale will contribute USD $18 million (approximately CAD $24.5 million) to fund drilling and preliminary studies. If successful, the second phase initiates the Iron Bear JV, with Vale holding an initial 30% interest and providing up to USD $120 million (around CAD $163 million) for further development. Vale can increase its stake to 75% and gain board control upon reaching that threshold.

Upon a decision to mine, Vale may acquire Cyclone’s remaining 25% stake at market value or fund Cyclone’s share of production costs, allowing it to retain equity without dilution. Vale also secured rights of first refusal, as well as tag-along and drag-along rights tied to Cyclone’s JV interest.

The Iron Bear project hosts 16.6 billion tonnes of iron ore grading 29.3% iron and is supported by strong infrastructure, including a heavy haul railway and the Pointe Noire port. Pilot production has shown high-quality direct reduction grade concentrate.