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Champion Iron Ltd. (TSX:CIA,ASX:CIA) announced that the Quebec Superior Court has approved its acquisition of the Bloom Lake mine and related rail assets, as well as the Quinto Mining Corp. mineral claims.
Champion Iron Ltd. (TSX:CIA,ASX:CIA) announced that the Quebec Superior Court has approved its acquisition of the Bloom Lake mine and related rail assets, as well as the Quinto Mining Corp. mineral claims.
All are located in Quebec, and were acquired from Cliffs Quebec Iron Mining ULC, Bloom Lake Mine Iron Ore Limited Partnership, Bloom Lake Railway Company Ltd. and Quinto.
As quoted in the press release:
On December 11, 2015, the Company announced that Québec Iron Ore Inc., a wholly-owned subsidiary of the Company, had entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) to acquire Bloom Lake and the Quinto Claims in Québec from the Bloom Lake CCAA Vendors.
On January 27, 2016, the Superior Court of Québec granted an “Approval and Vesting Order” authorizing the Bloom Lake CCAA Vendors to proceed with the sale of Bloom Lake and the Quinto Claims to Québec Iron Ore Inc. as part of the Bloom Lake CCAA Vendors’ CCAA proceedings.
The order provides that the Bloom Lake assets and the Quinto Claims will be acquired free and clear of any security interests and any other encumbrances (subject only to certain limited permitted encumbrances).
With the Court approval now granted, the Acquisition is expected to be completed later this quarter, subject to the satisfaction of other conditions to closing.
Michael O’Keeffe, chairman and CEO of Champion Iron, commented:
Bloom Lake represents strong upside potential for our shareholders to leverage the significant level of investment in Bloom Lake made by previous owners, and which we are expecting to acquire at very favourable terms pursuant to the Asset Purchase Agreement, especially when considering original cost.
Champion plans to acquire the Bloom Lake Mine because we believe it is an asset of global significance. We think it could potentially become one of the lowest capital cost iron ore mines in the world, even following an extended care and maintenance and the planned upgrade period.
Click here to read the full Champion Iron Ltd. (TSX:CIA,ASX:CIA) press release.