Champion Iron is getting closer to reopening the Bloom Lake iron ore mine in Quebec. (Credit: Champion Iron)
QUEBEC – Champion Iron of Montreal has moved another step closer to reopening the Bloom Lake iron ore mine with the non-brokered sale of a $31.2 million subordinated unsecured mandatory convertible debenture to Glencore International.
The debenture will mature in eight years and bears an interest rate of 12% for the first year. Thereafter it will be the same rate as the subordinated debt committed by CDP Investissements, a subsidiary of Caisse de depot et placement Quebec. Glencore may convert the debenture at any time into ordinary shares of Champion at a price of $1.125 per share. The mandatory conversion price is $0.85 which may be triggered by either of the senior secured creditors under the previously announced US$180 million debt financing.
Meanwhile, Champion announced that its operating subsidiary Quebec Iron Ore has signed rail and port access agreements with Societe Ferroviaire et Portuaire de Pointe-Noire. The deal covers the transportation, stockpile and loading of iron ore concentrate from Sept-Iles to Pointe-Noire.
Bloom Lake mineral reserves are estimated at 411.7 million tonnes grading 30% iron. Average annual production of 7.4 million tonnes of 66.2% iron concentrate. Please visit www.ChampionIron.com/project/bloom-lake for more details.