Champion Iron Ltd. (TSX: CIA) (ASX: CIA) today announced that it has concluded an agreement with la Caisse de dépôt et placement du Québec (CDPQ) for a preferred share offering of C$185 million plus a commitment for a fully underwritten $200 million credit facility with Scotiabank and Societe Generale.
The company has also acquired the remaining 36.8% interest in the Bloom Lake iron ore project for C$211 million. Bloom Lake is located approximately 13 km north of Fermont, Québec, and 10 km north of the Mont Wright iron ore mining complex belonging to ArcelorMittal Mines Canada.
Based on the latest technical report, mineral reserves at Bloom Lake are estimated at 411.7 million tonnes, with an average iron content of 30%. The average annual production of concentrate is 7.4 million tonnes, over a 21-year expected mine life span.
Shares of Champion Iron rose by nearly 6% on Wednesday morning, bringing the company’s market capitalization to just over C$1.2 billion.