NTI and Baffinland Sign Exploration Agreement
(September 15, 2008 – Cambridge Bay, Nunavut) Nunavut Tunngavik Inc. 1st Vice President James Eetoolook today announced that NTI signed a mineral exploration agreement with Baffinland Iron Mines Corporation granting rights to explore a portion of Inuit Owned Lands parcel PI-17. This parcel, 150 kilometers south of Pond Inlet, was selected by Inuit during the Nunavut Land Claims Agreement negotiations specifically because of its outstanding potential to host high grade and sizable iron deposits.
The NTI Board of Directors passed a Mining Policy in December 1997, and our employees continue to work hard to implement that policy. I am happy that we have signed this agreement with Baffinland, said Eetoolook. Baffinland is a good partner, with a strong record of working with the communities and managing a good exploration and development program.
Under the terms of the MOU:
Baffinland Iron Mines Corporation (BIM – TSX) will pay NTI an annual rent and is required to conduct exploration work each year.
The agreement covers 16,695 hectares of land around (but not including) the massive Mary River iron ore deposits on Baffin Island south of Pond Inlet.
Upon completion of a feasibility study on any portion of the exploration area, NTI has the option of taking either a 28 per cent participating interest or a 13 per cent net profits royalty in any mine that is developed subject to the study.
The exploration area is subject to an underlying 12 per cent net profits royalty payable on all minerals to NTI. This royalty is in addition to the 13 per cent net profits royalty that NTI has the option of receiving as described above.
This agreement does not include the Mary River iron deposits under ML2484 and ML2485 or the deposit generally referred to as Deposit #1. However, it should be noted that Deposit #1 is located where Inuit hold the land and mineral title. The deposit is under a grandfathered lease administered by the Department of Indian Affairs and Northern Development, and all rental and royalty revenue is forwarded to NTI.
For further information:
A/Director of Communications
Nunavut Tunngavik Incorporated
Tel: (867) 975-4939 Toll-free: 1-888-646-0006