CLEVELAND, Sept. 21 /PRNewswire-FirstCall/ -- Cleveland-Cliffs Inc
("Cleveland-Cliffs," "Cliffs") (NYSE: CLF) today announced that it has
signed a non-binding term sheet with Centennial Asset Mining Fund LLC, an
affiliate of MMX Mineracao e Metalicos SA ("MMX"), for the purchase of 100
percent of the shares of Centennial Asset Amapa Participacoes SA
("Centennial Amapa").
Centennial Amapa owns 30 percent of the Amapa Project, which is a
Brazilian iron ore project consisting of a significant iron ore deposit, a
192-kilometer railway and 71 hectares of real estate property on the banks
of the Amazon River for the development of an iron ore terminal. The Amapa
Project is currently under construction and expected to produce 6.5 million
tonnes of direct-reduction-grade pellet feed annually once fully
operational. Under the non-binding term sheet, Cliffs would purchase 100
percent of the shares of Centennial Amapa for US$133 million. Cliffs would
provide technical support for the construction and operation of the Amapa
Project and MMX would provide corporate and institutional support services.
It is anticipated that approximately $275 million in future capital will be
required for the Amapa Project. Pursuant to the term sheet, Cliffs would be
responsible for 30 percent of such future capital. Closing is subject to
completion of due diligence, completion of financing and negotiation and
execution of definitive documents for the transaction, as well as approval
of Cliffs' Board of Directors.
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on the link below:
http://www.cpg-llc.com/clearsite/clf/emailoptin.html
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest
producer of iron ore pellets in North America and sells the majority of its
pellets to integrated steel companies in the United States and Canada.
Cleveland-Cliffs Inc operates a total of six iron ore mines located in
Michigan, Minnesota and Eastern Canada. The Company is majority owner of
Portman Limited, the third-largest iron ore mining company in Australia,
serving the Asian iron ore markets with direct-shipping fines and lump ore.
This news release contains predictive statements that are intended to
be made as "forward-looking" within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. Although the Company
believes that its forward-looking statements are based on reasonable
assumptions, such statements are subject to risk and uncertainties. Actual
results may differ materially from such statements for a variety of
reasons, including: changes in global demand for iron ore by integrated
steel producers due to changes in steel utilization rates, consolidation
and rationalization, operational factors, electric furnace production;
availability of capital equipment and component parts; changes in the
financial condition of the Company's partners and/or customers; rejection
of major contracts and/or venture agreements by customers and/or
participants under provisions of the U.S. Bankruptcy Code or similar
statutes in other countries; events or circumstances that could impair or
adversely impact the viability of the Amapa Project and the carrying value
of associated assets; inability to achieve expected production levels;
failure to receive or maintain required environmental permits; problems
with productivity, labor disputes, weather conditions, fluctuations in ore
grade, tons mined, changes in cost factors including energy costs,
transportation and employee benefit costs; and the effect of these various
risks on the Company's future cash flows, debt levels, liquidity and
financial position. Furthermore, there can be no assurance that the
transactions contemplated by the term sheet will be completed or that
development of the Amapa Project will be successfully completed.
Reference is also made to the detailed explanation of the many factors
and risks that may cause such predictive statements to turn out
differently, set forth in the Company's Annual Report for 2005, Reports on
Form 10-K and Form 10-Q and previous news releases filed with the
Securities and Exchange Commission, which are publicly available on
Cleveland-Cliffs' website. The information contained in this document
speaks as of the date of this news release and may be superseded by
subsequent events.
News releases and other information on the Company are available on the
Internet at:
http://www.cleveland-cliffs.com.
SOURCE Cleveland-Cliffs Inc
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Related links:
http://www.cleveland-cliffs.com
http://www.cpg-llc.com/clearsite/clf/emailoptin.html
CONTACT:
Media, +1-216-694-4870, or Financial
Community, +1-800-214-0739, or +1-216-694-5459, both of
Cleveland-Cliffs Inc
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