Champion Iron, Mamba Minerals Move Closer to Merger

Champion Iron Mines Ltd. (TSX:CHM) provided an update on the progress Mamba Minerals Ltd. (ASX:MAB) has made in meeting the conditions required for the companies’ merger.

Thomas Larsen, president and CEO of Champion, said that Mamba is making “timely progress” and that the companies are well on their way to a successful combination.

As quoted in the press release:

Mamba reported earlier today that it has received firm acceptances for A$10 million at A$0.50 per share via a private placement (the “Placement”) to selected institutional and sophisticated investors through Blackswan Equities Ltd and Capital Investment Partners Pty Ltd. Mamba indicated that funds were to be held in trust until completion of the business combination with Champion. Completion of the Placement is a key condition of the pending transaction with Champion.

Another condition requires that certain Mamba shares designated as “performance shares” be consolidated and converted to ordinary shares of Mamba at a ratio of 10 for 1. Mamba reported that all the performance shareholders have provided written acceptance to the consolidation and conversion.

Click here to read the full Champion Iron Mines Ltd. (TSX:CHM) press release.