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The Labrador Iron Ore properties comprise 413 claims (10,325 hectares) held under eight exploration licences in the Western Labrador iron ore mining district. The properties are underlain by Lower Proterozoic (c.a. 2.0 Ga) iron formations of the Knob Lake Group which host all current and past iron ore production in the district. The properties cover approximately twenty-four iron ore occurrences that offer prospective exploration targets.
In December 2008 Altius and Kennecott Canada Exploration Inc. ("KCEI"), a member of the Rio Tinto Group of companies, announced an iron ore exploration and royalty agreement. Under the agreement KCEI may earn a 51% interest by reimbursing Altius for its costs to date and spending C$3,000,00 on or before the third anniversary date of the agreement. Upon earning a 51% interest in the properties, KCEI may elect to form a joint venture or elect to earn a 70% interest by spending an additional C$4,000,000 on or before the fifth anniversary date of the agreement. Altius will hold a 3% Gross Overriding Royalty ("GOR") on the properties, provided however KCEI may elect to buy-down 1% from the GOR for C$10,000,000 on or before the tenth anniversary of the agreement.
