VanadiumCorp Resource Inc. entered a letter of intent to sell 100% of its Iron-T vanadium-titanium-iron project in Quebec to a private company.

The company will receive a first right of refusal, when the project starts production, to acquire up to 200,000 tonnes per annum of vanadiferous titanomagnetite concentrate as an off-take valid for up to 15 years.

The private company can earn an initial 75% interest by spending US$5 million on exploration and paying US$1 million in cash and stock to VanadiumCorp within four years, according to the May 29 release.

It can secure an additional 10% interest by completing a positive preliminary economic assessment, and a further 15% stake on completion of a positive feasibility study.

The private company will become the operator and responsible for ongoing costs related to the project.