Northern Iron Corp (TSXV:NFE) announced that it has signed a Memorandum of Understanding (non-binding) with Ontario Iron Ore Mining Inc, under which it has been outlined that both companies will work together to develop the Red Lake-Ear Falls area.

As quoted in the press release:

Both firms agree that they will benefit mutually from shared: rail, power supply and production facilities and have agreed under the MOU to cooperate as follows:

1. Share capital costs to rebuild and update the rail, power and production facilities.
2. Each firm will work towards mining iron ore from their wholly-owned properties however Northern Iron will manage mining, crushing and beneficiation at all the properties as they come into production.
3. Ore from satellite properties will be processed at the Griffith property and processed into Hot Briquetted Iron (HBI) for export.
4. OIMI will endeavour to fund the project’s capital requirements from Asian investors and will manage the marketing of HBI to Asian markets where they already supply a number of state owned enterprises in China with iron ore.

Click here to read the full Northern Iron Corp (TSXV:NFE) press release.