Champion Iron Completes Sale of $10 Million Convertible Debenture

Champion Iron (asx:CIA) (CIA) (“Champion” or the “Company”), is pleased to announce that it has completed the previously announced non-brokered sale of a $10 million unsecured subordinated convertible debenture (the “Debenture”) to Altius Minerals (“Altius”).
The sale of the Debenture is a component of a CDN$40 million debt and equity bridge financing which Champion arranged for its subsidiary Quebec Iron Ore Inc. (“QIO”), in connection with the restart of operations at QIO’s Bloom Lake Iron Mine (“Bloom Lake”), located near Fermont, Quebec. Details of the bridge financing were previously disclosed by Champion on May 18, 2017.

The Debenture is convertible at the option of Altius at any time into Champion Ordinary Shares (“Shares”) at a conversion price of $1.00 per Share. Should Champion and QIO not complete a master financing (“Master Financing”) of a minimum of $212 million to finance certain Bloom Lake capital expenditures by November 30, 2017, then the conversion price will be adjusted to the lesser of $1.00 or to the five-day weighted average trading price of the Shares on the TSX determined as of the date of conversion.

The maximum number of Shares that may be issued upon conversion of the Debenture is 50,000,000 with the balance of the unconverted principal amount of the Debenture, if any, to be repaid in cash or converted into a proportion of the Royalty (as defined hereinafter) at the option of the Company.
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