Wuhan Iron & Steel (Group) Corp (WISCO), one of the largest steelmakers in the country, has finalized the terms of a $240 million investment agreement with Consolidated Thompson Iron Mines of Canada.

According to the agreement, WISCO will buy 38.7 million common shares of the Canadian company at a price of C$2.72 per share, which represents a 19.99 percent stake in the company. Consolidated Thompson will receive aggregate proceeds of C$105.2 million.

The two companies will also establish a limited partnership in which WISCO will hold a 25 percent interest and to which Consolidated Thompson will contribute its Bloom Lake property. Located in Duplessis County in Quebec, Bloom Lake is a development-stage iron ore project with a 34-year mining life.