Champion Iron Mines Completes Arrangement With Mamba Minerals
March 31 2014 - 7:00AM
Marketwired
Champion Iron Mines Completes Arrangement With Mamba Minerals
TORONTO, ONTARIO--(Marketwired - Mar 31, 2014) - Champion Iron
Mines Limited (TSX:CHM)(FRANKFURT:PO2) ("Champion" or the
"Company") and Mamba Minerals Limited (ASX:MAB) ("Mamba") are
pleased to announce today the completion of their previously
announced business combination pursuant to which Mamba and a
wholly-owned subsidiary, Champion Exchange Limited have acquired
all 137,895,609 outstanding common shares of Champion under a
court-approved plan of arrangement (the "Arrangement"). The company
resulting from the business combination is now known as
Champion Iron
Limited ("New Champion").
As of today's date, New Champion's ordinary shares are trading
on the Toronto Stock Exchange ("TSX") and the Australian Securities
Exchange under the symbol "CIA", thus providing New Champion with
access to both the Canadian and Australian capital markets and the
shareholders of New Champion with the ability to trade their
ordinary shares on either stock exchange. Champion's common shares
will be de-listed from the TSX.
Under the Arrangement, each Champion shareholder is entitled to
receive 0.7333333 ordinary shares of New Champion for each Champion
common share held (the "Exchange Ratio"). Certain eligible Champion
shareholders elected to receive all or part of their consideration
in the form of exchangeable shares of Champion Exchange Limited.
The Arrangement also resulted in the issuance of New Champion
replacement stock options to holders of outstanding Champion
options (as adjusted by the Exchange Ratio).
Concurrent with the closing of the Arrangement, New Champion
closed an A$10 million equity financing at A$0.50 per New Champion
ordinary share. This financing strengthens New Champion's balance
sheet and provides financial flexibility for its development plans.
The net proceeds provide New Champion with working capital and will
be applied to fund a bankable feasibility study on its Consolidated
Fire Lake North Project, where additional infill drilling is
ongoing.
Michael O'Keeffe has been appointed as Executive Chairman and
Thomas Larsen as the Chief Executive Officer of New Champion.
Commenting on the Arrangement, Thomas Larsen said "The closing
today of our business combination with Mamba represents the
beginning of an exciting new chapter in the development of the
Consolidated Fire Lake North Project. Michael O'Keeffe brings
significant experience and expertise in developing bulk commodity
projects and iron ore projects. I look forward to working with
Michael and his team to deliver significant value and potential to
our combined shareholders."
Michael O'Keeffe added that "our combined team is committed to
realising the significant potential of New Champion's projects. We
combined the business because collectively, with the strengthened
balance sheet and the extended management, New Champion is in a
better position to build shareholder value as we position our
flagship Consolidated Fire Lake North project for production. Our
main project is in close proximity to major mining and industrial
groups and the wider region is already well-developed in terms of
rail and port infrastructure."
About New Champion
New Champion is an iron exploration and development company with
offices in Montreal, Toronto and Australia, and is focused on
developing its significant iron resources in the Labrador Trough in
the province of Québec. New Champion holds a 100% interest in the
Fermont Iron Holdings, including its flagship Consolidated Fire
Lake North Project, that is located in Canada's major iron ore
producing district, in close proximity to producing iron mines,
existing transportation and power infrastructure.
Consolidated Fire Lake North is located immediately north of
Arcelor Mittal's operating Fire Lake Mine and 60 km south of Cliffs
Natural Resources Inc.'s Bloom Lake Mine in northeastern Québec.
New Champion's management and advisory board includes mining and
exploration professionals with the mine development and operations
experience to build, commission and operate the future Consolidated
Fire Lake North mine.
New Champion also holds an option to earn into 100% of the
Snelgrove Lake Project, a highly prospective iron ore project
located in the Labrador Trough in Newfoundland and Labrador. The
Snelgrove Lake Project has excellent access to infrastructure, with
potential for both a hematite and multi-billion tonne magnetite
project.
For additional information on Champion Iron Mines Limited,
please visit our website at www.championironmines.com.
This news release includes certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward-looking information includes, but
is not limited to, statements about planned operations at the
Company's projects, including its joint venture projects.
Forward-looking information is necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information, including the risks identified in
Champion's annual information forms, management discussion and
analysis and other securities regulatory filings by Champion on
SEDAR (including under the heading "Risk Factors" therein) and the
risk that the Arrangement may not be completed or, if the
Arrangement is completed, uncertainties regarding the combination
of Champion and Mamba and the ability to realize growth
opportunities. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such forward-looking
information. Accordingly, readers should not place undue reliance
on forward-looking information. All of Champion's forward-looking
information contained in this press release is given as of the date
hereof and is based upon the opinions and estimates of Champion's
management and information available to management as at the date
hereof. Champion disclaims any intention or obligation to update or
revise any of its forward-looking information, whether as a result
of new information, future events or otherwise, except as required
by law.
This press release has been prepared by Champion Iron Mines
Limited and no regulatory authority has approved or disapproved the
information contained herein.
Champion Iron Mines LimitedThomas G. LarsenPresident and
CEO(416) 866-2200Champion Iron Mines LimitedJorge
EstepaVice-President(416) 866-2200www.championironmines.com