TSX Venture Exchange: FEO
/NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES/
VANCOUVER, Nov. 1, 2018 /CNW/ - Oceanic Iron Ore Corp.
(TSX-V: FEO) ("Oceanic", or the "Company") is
pleased to announce the commencement of a revised and re-scoped
National Instrument 43-101 Preliminary Economic Assessment in
respect of the Company's Hopes Advance Project
("Study").
The objective of the Study will be to revise the profile and
production schedule of Hopes Advance in order to reduce the
up-front capital required to bring the project to commercial
production. Furthermore, the proposed revised production
profile will assume seasonal shipping, and thus also mitigate the
risk and cost of winter shipping from Ungava Bay, all while aiming
to achieve similar returns on investment at current iron ore prices
compared to the previous Pre-Feasibility Study from 2012.
The Study is planned to be led by the Montreal office of BBA Engineering Ltd.
("BBA"), a Canadian consulting engineering firm with over
700 employees, who have extensive experience with iron ore
projects, particularly in the Labrador Trough. Working
alongside BBA will be Wood (formerly, AMEC Foster Wheeler), who
worked with the Company on Port related infrastructure in the
Company's previous studies.
The Company expects to announce the results of the Study in
first half of 2019.
Private Placement Financing
The Company is also pleased to announce a non-brokered financing
in an aggregate amount of up to CAD $1,800,000 (the "Financing").
The subscribers to the Financing will be issued convertible
debentures (the "Debentures") which will earn interest at a
rate of 8.5% per annum over a 60 month term (the "Term"),
payable quarterly.
The principal amount of the Debentures will be convertible to
Units ("Unit") during the Term at the election of the
subscriber. The conversion price during the first year of the
term is $0.05 per Unit, increasing to
$0.10 per Unit for the remainder of
the Term. Each Unit will consist of 1 common share in the
capital of the Company and 1 share purchase warrant of the Company,
with each whole warrant entitling the holder to purchase one common
share in the capital of the Company at a price of $0.05 per common share for a period of 5 years
after closing.
The Debentures will be secured with a first ranking charge at
any time against the assets of the Company, ranking parri-passu
with the current secured debenture holders.
The Company intends to use the proceeds of the Financing to fund
the aforementioned Study, ongoing negotiations with potential
strategic partners, general claims maintenance, and corporate and
working capital purposes.
The Financing is subject to acceptance for filing by the TSX
Venture Exchange.
OCEANIC IRON ORE CORP. (www.oceanicironore.com)
On behalf of the Board of Directors
"Steven Dean"
Chairman
+604 566-9080
This news release includes certain "Forward-Looking
Statements" as that term is used in applicable securities law. All
statements included herein, other than statements of historical
fact, including, without limitation, statements regarding potential
mineralization and resources, exploration results, and future plans
and objectives of Oceanic Iron Ore Corp. ("Oceanic", or the
"Company"), are forward-looking statements that involve various
risks and uncertainties. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "scheduled", "believes", or
variations of such words and phrases or statements that certain
actions, events or results "potentially", "may", "could", "would",
"might" or "will" be taken, occur or be achieved. There can be no
assurance that such statements will prove to be accurate, and
actual results could differ materially from those expressed or
implied by such statements. Forward-looking statements are
based on certain assumptions that management believes are
reasonable at the time they are made. In making the
forward-looking statements in this presentation, the Company has
applied several material assumptions, including, but not limited
to, the assumption that: (1) there being no significant disruptions
affecting operations, whether due to labour/supply disruptions,
damage to equipment or otherwise; (2) permitting, development,
expansion and power supply proceeding on a basis consistent with
the Company's current expectations; (3) certain price assumptions
for iron ore; (4) prices for availability of natural gas, fuel oil,
electricity, parts and equipment and other key supplies remaining
consistent with current levels; (5) the accuracy of current mineral
resource estimates on the Company's property; and (6) labour and
material costs increasing on a basis consistent with the Company's
current expectations. Important factors that could cause actual
results to differ materially from the Company's expectations are
disclosed under the heading "Risks and Uncertainties " in the
Company's MD&A filed August 22,
2018 (a copy of which is publicly available on SEDAR at
www.sedar.com under the Company's profile) and elsewhere in
documents filed from time to time, including MD&A, with the TSX
Venture Exchange and other regulatory authorities. Such factors
include, among others, risks related to the ability of the Company
to obtain necessary financing and adequate insurance; the economy
generally; fluctuations in the currency markets; fluctuations in
the spot and forward price of iron ore or certain other commodities
(e.g., diesel fuel and electricity); changes in interest rates;
disruption to the credit markets and delays in obtaining financing;
the possibility of cost overruns or unanticipated expenses;
employee relations. Accordingly, readers are advised not to place
undue reliance on Forward-Looking Statements. Except as
required under applicable securities legislation, the Company
undertakes no obligation to publicly update or revise
Forward-Looking Statements, whether as a result of new information,
future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Oceanic Iron Ore Corp.
