Roche Bay

Exploration for iron ore has been going in in Roche Bay near Hall Beach, Nunavut for decades. (Advanced Explorations)

Advanced Explorations Inc., the company that’s been working on developing the Roche Bay iron ore project near Hall Beach, Nunavut, is forming a joint venture with a Chinese private wealth fund.

The new subsidiary corporation will be called Savik Iron Mines, the companies say in a joint news release.

Under the deal, Parkson will pay $600,000 to Advanced Explorations, and gain the right to earn 80 per cent equity in Savik, while Advanced Explorations will retain a 20 per cent interest until production at the mine site begins.

Savik will also take over $13.3 million in Advanced Explorations’ corporate debts.

That’s if shareholders agree to approve the deal.

Advanced Explorations describes its Roche Bay and Tuktu iron ore projects on the Melville Peninsula as of one of the world’s largest developing iron ore districts.

The company hopes to be able to ship ore directly to market from the Nunavut coast.

China is the world's largest consumer of iron ore.