Champion Iron completes acquisition of the Kami Project from Alderon Iron Ore Corp.
April 01, 2021
44.00 Million CAD
On April 1, 2021, Champion Iron Limited (“Champion”) completed the previously announced acquisition of the mining properties of the Kamistiatusset iron ore project located in the Labrador Trough geological belt in southwestern Newfoundland, and certain related contracts, previously owned by Alderon Iron Ore Corp. and its certain of its affiliates (collectively, “Alderon”). The purchase was conducted in the context of the receivership proceedings of Alderon. In connection therewith, Champion acquired approximately $19.4 million in secured debt of Alderon owed to Sprott Private Resource Lending (Collector), LP for a consideration of 4.2 million ordinary shares of Champion.
Champion, through its subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex, located on the south end of the Labrador Trough, approximately 13 km north of Fermont, Quebec, adjacent to established iron ore producers. Champion also controls a portfolio of exploration and development projects in the Labrador Trough and owns 100% of the Gullbridge-Powderhorn property in Northern Central Newfoundland.
The Kami project is a high-grade iron ore project near available infrastructure, situated a few kilometres south east of Champion’s operating Bloom Lake mine.
McCarthy Tétrault advised Champion in connection with the acquisition with the team led by Louis-Nicolas Boulanger that included Marc Dorion, Jocelyn Perreault, Charles-Antoine Soulière, Dominic Thérien, Konstantin Sobolevski, Louis-Philippe Samson, Karina Gagnon, Camille Paquette and Annie Poirier-Simard.