Champion Iron closes $11.7M first closing of public offering

News Release


Montréal (Québec), Canada, September 25, 2017: Champion Iron Limited (ASX: CIA) (TSX: CIA) (the “Corporation”, or “Champion”) announces that it has closed a portion of its previously announced public offering (the “Offering”) of subscription receipts (the “Subscription Receipts”). 13,006,000 Subscription Receipts were issued at a price of $0.90 per Subscription Receipt (the “Offering Price”) for aggregate gross proceeds of $11,705,400. It is anticipated that the Corporation will complete the balance of the Offering for aggregate gross proceeds of up to $20 million on or around September 28, 2017.

In the event aggregate gross proceeds of at least $15 million have not been received on September 29, 2017 or such other date as the Corporation and the Dealers (as defined below) may agree upon, but in any event not later than October 16, 2017, each Subscription Receipt will be automatically cancelled without any further action. Holders of the Subscription Receipts will be entitled to receive a repayment of an amount equal to the Offering Price multiplied by the number of Subscription Receipts held by such holder.

The Offering is being conducted through a syndicate of dealers led by RBC Capital Markets, as sole bookrunner, and Sprott Capital Partners, as co-lead dealer, that includes BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Desjardins Capital Markets and Macquarie Capital Markets Canada Ltd. (collectively, the “Dealers”).

It is expected that the Subscription Receipts will begin trading on the Toronto Stock Exchange under the symbol “CIA.R” upon closing of the balance of the Offering.

As previously announced on July 12, 2017, August 1, 2017, August 28, 2017 and September 7, 2017, Québec Iron Ore Inc. (“QIO”), a subsidiary of the Corporation, has received conditional commitments of US$180 million (the “QIO Debt Financing”) to partially fund the costs of resuming the operations of the Bloom Lake Iron Ore Mine (“Bloom Lake”). One of the conditions of the QIO Debt Financing requires the Corporation and QIO to secure all financing requirements for the Bloom Lake restart. In connection therewith, QIO’s equity shareholders, namely Champion and Ressources Québec Inc. are required to contribute financially to support the resumption of operations at Bloom Lake by making capital contributions to QIO of approximately $44.8 million and $26.2 million, respectively. The Corporation intends to use the proceeds from the non-brokered sale of US$25 million (approximately $31 million) principal amount of subordinated unsecured mandatory convertible debenture (the “Debenture”) to Glencore International AG, as well as the net proceeds of the Offering to make such capital contribution to QIO, further to which any remaining amount received from the Offering and the sale of the Debenture would be used for general corporate purposes.

The net proceeds of the total Offering will be held in escrow and, upon the satisfaction or waiver of certain conditions (the “Escrow Release Conditions”), being (a) the execution of definitive documentation in connection with the QIO Debt Financing and the satisfaction or waiver of all conditions precedent to the availability of the funds thereunder (other than such conditions precedent which, by their nature, are to be satisfied upon closing of the QIO Debt Financing or upon satisfaction or waiver of the Escrow Release Conditions); and (b) the funding of the capital contribution of Ressources Québec Inc., the net proceeds will be released to the Corporation and holders of the Subscription Receipts will be entitled to receive, without payment of additional consideration or taking of further action, one ordinary share of Champion for each Subscription Receipt held. If these conditions have not been satisfied or waived by October 16, 2017, or if any of the parties to the QIO Debt Financing decides not to proceed with the QIO Debt Financing, then the Subscription Receipts shall be automatically cancelled and the escrow agent shall remit to holders of the Subscription Receipts an amount equal to the original purchase price plus accrued interest.

No securities regulatory authority has either approved or disapproved the contents of this press release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. Champion’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Champion
Champion is an iron development and exploration company, focused on developing its significant iron resources in the south end of the Labrador Trough in the province of Québec. Following the acquisition of its flagship asset, the Bloom Lake iron ore property, the Corporation’s main focus is to implement upgrades to the mine and processing infrastructure it now owns while also advancing projects associated with improving access to global iron markets, including rail and port infrastructure initiatives with government and other key industry and community stakeholders.

Champion’s management team includes professionals with mine development and operations expertise who also have vast experience from geotechnical work to green field development, brown field management including logistics development and financing of all stages in the mining industry.

For further information please contact:
Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514-316-4858
David Cataford, COO at Tel. +1 514-316-4858

For additional information on Champion Iron Limited, please visit our website at