Palladon Ventures Ltd. (TSX VENTURE:PLL)(FRANKFURT:PV-1) is pleased to announce that it has been notified that a letter of intent (LOI) has been signed between its joint venture partner Luxor Capital Group ("Luxor") and Jiangshu Shagang Group Co. Ltd. ("Shagang") for the purchase of Luxor's entire stake in the processed iron ore portion of the Iron Mountain project joint venture in Utah. The joint venture is held by Palladon Iron Corporation ("PIC"). Shagang's due-diligence continues and is expected to close on or before April 10, 2007. Terms of the agreement are confidential.
Shagang is China's largest private steel company and one of China's top five steel producers with an annual production capacity of 10 million tons of iron, 15 million tons of steel, 15 million tons of rolled products, 400,000 tons of stainless steel strip and 150,000 tons of galvanized steel sheet. Jiangshu Shagang Group also owns 7 kilometers of deep water port, located in ZhangJiagang City, an Economic Development Zone on the Yangtze River.
Donald G. Foot Jr., President and CEO of Palladon Ventures said the company welcomes the opportunity to work with a new partner that is well-integrated in the iron ore business. "Shagang will not only be a strategic partner that has the same goals and objectives as PIC, but a partner that will also be the ultimate end-user of iron concentrate," said Foot.
On Behalf of the Board of Directors,
Donald G. Foot, Jr., President & Chief Operating Officer
Palladon Ventures Ltd. is a junior resource company focused on building production facilities at the Comstock/Mountain Lion iron mine in Iron County, Utah. Palladon also holds gold exploration projects in Nevada, Utah, and Argentina.
SOURCE: Palladon Ventures Ltd.