Labrador Iron Ore Royalty Corp recently announced that it had hired financial advisors to determine available strategic options. This comes after reports that Rio Tinto would sell its controllong stake in the only asset of the Canadian Company.
The asset is the 15.1% equity stake with a 7% royalty interest in the Irone Ore Company of Canada, the largest iron ore producer in Canada. Rio Tinto currently owns 59% of the company and has recently engaged the services of banks with the goal of selling off the shareholdings. This was confirmed by two confidential sources who told Reuters last month of the possible sale.
As a result, Labrador Iron Ore is looking over 'all strategic alternatives' such as the sale of the company, sale of all or part of its assets, cancelling its royalty agreement and equity interest in the company or even maintaining the status quo.
One of the shareholders in Labrador Iron Ore had called out the company to seek its options. The shareholder is Waratah Advisors, saying, "We reiterate that the royalty is a premium financial asset which is having its true value diminished by the IOC equity."
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