Champion Iron Closes C$30 Million Financing, Bloom Lake Acquisition

Champion Iron (TSX:CIA,ASX:CIA) has closed its previously announced C$30 million private placement financing. It has also closed the acquisition of the Bloom Lake Mine and related rail assets through its subsidiary, Québec Iron Ore.
As quoted in the press release:

The Company closed a private placement financing of an aggregate 187,500,000 ordinary shares at a price of C$0.16 per share for proceeds of C$30 million (the “Offering”) which was utilized to fund the Acquisition purchase price with the balance to provide the Company with working capital and to assist in meeting care and upgrade costs in respect of the Bloom Lake Mine. The ordinary shares were issued pursuant to exemptions from the prospectus requirements of applicable securities laws and are subject to a four-month statutory hold period from the date of closing of the Offering.

Highlights of the Bloom Lake acquisition included:

On December 11, 2015, the Company announced that QIO had entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) in respect of the Acquisition and on January 27, 2016, Champion reported that the transaction was approved by the Québec Superior Court under the Companies’ Creditors Arrangement Act (Canada).
Pursuant to the Asset Purchase Agreement the Bloom Lake assets and the Quinto Claims were acquired by QIO for a cash consideration of C$10.5 million and the assumption of certain liabilities. Under the Asset Purchase Agreement, QIO is responsible for environmental obligations which include environmental reclamation liabilities presently assessed at approximately C$41.7 million by the Government of Québec, as well as the replacement of certain bonds securing certain obligations of Bloom Lake totalling approximately C$1.1 million.

Click here for the full press release.