New iron ore company

Altius Minerals Corp. has entered into an agreement with a private company with respect to its Kamistiatusset iron ore project in western Labrador of Canada. A primary condition of the agreement is that the private company is obligated to form a new public company that will focus on the western Labrador iron ore mining district of Canada. Newco is wholly responsible for the recruitment of a Management and Board acceptable to Altius. Organization of the board, management and capital structuring of Newco is presently underway. As part of the commercial agreement, a substantial drilling program with a budget of approximately USD 5 million is anticipated to commence early in 2010 to provide sufficient data to generate an NI 43-101 resource estimate of the iron ore zones discovered by Altius in its 2008-2009 drilling program. Altius will retain a 100% interest in the Kamistiatusset project until such time as Newco incurs the USD 5 million in exploration expenditures on the property. At that time Altius will transfer its 100% interest in the project to Newco in exchange for a 3% gross sales royalty and for an initial 50% equity interest in Newco.
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