New Millennium Iron Corp. (NML), a Canadian iron-ore producer announced a review process for the Heads of Agreement (HOA) between NML and Tata Steel Global Minerals Holdings (Tata Steel) which governs the feasibility study of the Taconite project (TFS).

Currently, Tata Steel owns approximately 26.2% of NML and is the company's largest shareholder and strategic partner

NML said, "As the current macro-economic situation poses challenges for development of the TFS as currently conceived in the HOA, NML and Tata Steel are re-visiting the terms of the HOA."

"As part of this review, Tata Steel will consider current, or potentially future, participation in NML's recently announced alternative development approach to its taconite properties. The parties intend to conclude a definitive agreement during the first quarter of 2016 subject to the respective Board approvals of the parties," it added.

Robert Patzelt, president and CEO of NML, said, "This is a prudent strategic step for NML and Tata Steel that recognizes the changed market environment for the Taconite Project. The TFS provides us with the benefit of best mining and beneficiation practices that are applicable to all of our taconite properties, as well as a valuable base of regional environmental data, thereby enabling the accelerated study of additional development options. We look forward to pursuing this work."