Champion Iron Partners Up to Advance Rail Feasibility

Champion Iron Limited (TSX:CIA) announced that the Government of Québec and Lac Otelnuk Mining Ltd., a joint venture between Adriana Resources (“Adriana”) and WISCO International Resources Development & Investment Limited, have formed a partnership for the advancement of a feasibility study for a new rail line in the Labrador Trough. The partnership is called “La Société ferroviaire du Nord québécois,” or the SFNQ.

As quoted in the press release:

The SFNQ was formed recently, following the tabling by the Québec government of its 2014-2015 budget in June, as a partnership of government and industry and assigned the responsibility of managing the implementation of the Feasibility Study for a new Labrador Trough rail line.

The Québec government has set aside a maximum of C$20 million from its Plan Nord Fund to contribute to the study. For its part, Champion’s contribution of sunk costs is valued up to C$6 million. Among other major economic and wide-reaching social benefits, the new rail infrastructure when developed will enhance the Québec-based mining industry’s ability to service world markets with competitive long-term tariffs.

Champion chairman and CEO, Michael O’Keeffe, said:

The SFNQ partnership includes the Government of Québec and fellow mining group Lac Otelnuk Mining Ltd, with an open invitation to others from within industry to join this important initiative. A range of partners will ensure the study considers the concerns of all potential rail link users and in doing so advocates a multi-user system favouring a final outcome encouraging joint investment. Champion is pleased to be a part of the SFNQ partnership.

Click here to read the Champion Iron Limited (TSX:CIA) press release