Canadian Mining Journal

News

IRON ORE: Champion Iron closes acquisition of Bloom Lake property



QUEBEC – Champion Iron of Montreal has completed a $30 million financing and closed the acquisition of the Bloom Lake iron ore mine 400 km north of Sept-Iles. The deal included includes the former producer, related rail assets, and the claims formerly belonging to Quinto Mining.

A Champion Iron subsidiary, Quebec Iron Ore, paid $10.5 million for the Bloom Lake assets and assumed liabilities totaling $42.7 million related to environmental obligations.

Champion Iron completed the $30 million financing by issuing 187.5 million ordinary shares at a price of $0.16 per share. The proceeds were used to pay for the Bloom Lake acquisition and to provide working capital.

For further information about the company’s plans in the Labrador trough, see www.ChampionIron.com.