Ring of Fire project developer, KWG Resources, said it’s signed a memorandum of understanding with China Railway First Survey & Design Institute Group.
The document sets out the terms to proceed with a feasibility study on how to engineer and finance a railroad to reach the remote mineral deposits in the James Bay region.
The negotiations were done through KWG’s Chinese agent, Golden Share Mining.
In a news release, KWG said a group from China Railway will arrive in Ontario for initial talks before the middle of March.
KWG also added that it’s now taking advice from Intercedent Ltd., an Asian investment advisory firm.
The Toronto exploration firm, which has a minority stake in the Big Daddy chromite deposit in the Ring, holds a strategic, but disputed, transportation right-of-way that it wants to use for a future railroad. The matter still remains before the courts.
KWG affirms that the rights of First Nations, on whose traditional lands this corridor crosses, will be consulted and accommodated before any further agreements are undertaken.
