Iron Bear Resources Limited has received a draft notice from Vale acknowledging the completion of Phase 1 of their Development Agreement and confirming that Vale will not proceed to Phase 2. The decision will leave Iron Bear with 100% ownership of the Iron Bear project upon the formal lodgement of a final termination notice.

Over Phase 1, Vale’s total financial contribution increased to US$18 million. According to the company, these funds successfully de-risked the asset without shareholder dilution and supported pilot-scale test work.

Iron Bear enters this phase with A$15.3 million in cash on hand, removing the requirement for near-term capital raising. While the board expects the termination to proceed smoothly, planned project timelines will see the Phase 1 drilling campaign deferred by up to two years until additional funding is secured, though this delay has no impact on existing Pre-Feasibility Study scenarios due to the scale of the mineral resource.

Building on the Pre-Feasibility Study released in July 2026—which outlined an unleveraged post-tax net present value of US$9.0 billion and an internal rate of return of 15.2%—the company is advancing several operational catalysts.

During the fourth quarter of 2026, Iron Bear plans to deliver an updated version of the Pre-Feasibility Study featuring improved financial outcomes and new operational scenarios. Alongside these studies, the company anticipates appointing a Tier 1 financial advisor to define a formal project financing package.

Managing Director Paul Berend commented on the transition:

“We are grateful for the technical and financial contributions that Vale made to the Iron Bear Project. IBR's retention of 100% ownership unlocks exciting opportunities to secure future funding from industrial partners, institutional investors or off takers, leveraging a much more advanced and de-risked project than in February 2025 when we signed the Development Agreement.”

— Paul Berend, Managing Director

Additional fourth-quarter milestones include securing status as a project of national significance under Canada's C-5 Bill and registering the environmental impact document at federal and provincial levels to formally start environmental permitting.

Read the full announcement: Completion of Phase 1 Development Agreement