MONTRÉAL, Nov. 29,
2023 /CNW/ - (Sydney, November 30,
2023) - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX:
CIAFF) ("Champion" or the "Company") is pleased to announce that
its subsidiary, Quebec Iron Ore Inc. ("QIO"), has agreed with its
syndicate of lenders led by Societe Generale (Coordinating Bank,
Mandated Lead Arranger and Joint Bookrunner) and Bank of
Nova Scotia ("Scotiabank")
(Mandated Lead Arranger and Joint Bookrunner) to extend the
maturity of its existing US$400
million revolving credit facility from May 2026 to November
2027 and additionally, on a new US$230 million term loan facility maturing in
November 2028 with no principal
repayment until mid-2026 (the " Financing"). The Financing is
expected to significantly increase the Company's available
liquidity to support organic growth and development opportunities
in line with the Company's vision to contribute to reducing
steelmaking emissions.
Champion CEO, Mr. David Cataford,
said: 'We thank our team of financial partners who share our vision
to provide a solution for the green steel supply chain. The closing
of the Financing, in addition to our robust financial position and
operational cash flows, enables our Company to maintain its
conservative capital management approach while increasing our
flexibility to consider additional organic growth
opportunities.'
About Champion Iron
Limited
Champion, through its wholly-owned subsidiary Quebec Iron Ore
Inc., owns and operates the Bloom Lake Mining Complex, located on
the south end of the Labrador Trough, approximately 13 km north of
Fermont, Québec. Bloom Lake is an
open-pit operation with two concentrators that primarily source
energy from renewable hydroelectric power. The two concentrators
have a combined nameplate capacity of 15 Mtpa and produce low
contaminant high-grade 66.2% Fe iron ore concentrate with a proven
ability to produce a 67.5% Fe direct reduction quality iron ore
concentrate. In January 2023, the
Company announced the positive findings of a study evaluating the
upgrade of half of the Bloom Lake mine's capacity to a direct
reduction quality pellet feed iron ore and approved an initial
budget to advance the project. Bloom Lake's high-grade and low
contaminant iron ore products have attracted a premium to the
Platts IODEX 62% Fe iron ore benchmark. The Company ships iron ore
concentrate from Bloom Lake by rail, to a ship loading port in
Sept-Îles, Québec, and has sold its iron ore concentrate to
customers globally, including in China, Japan,
the Middle East, Europe, South
Korea, India and
Canada. In addition to Bloom Lake,
Champion owns a portfolio of exploration and development projects
in the Labrador Trough, including the Kamistiatusset Project,
located a few kilometres south-east of Bloom Lake, and the
Consolidated Fire Lake North iron ore project, located
approximately 40 km south of Bloom Lake.
Cautionary Note Regarding
Forward-Looking Statements
This press release includes certain information and statements
that may constitute "forward-looking information" under applicable
securities laws. Forward-looking statements are statements that are
not historical facts and are generally, but not always, identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "continues", "forecasts",
"projects", "predicts", "intends", "anticipates", "aims", "targets"
or "believes", or variations of, or the negatives of, such words
and phrases, or state that certain actions, events or results
"may", "could", "would", "should", "might" or "will" be taken,
occur or be achieved. Inherent in forward-looking statements are
risks, uncertainties and other factors beyond the Company's ability
to predict or control.
Specific Forward-Looking Statements
All statements other than statements of historical facts
included in this press release that address future events,
developments or performance that Champion expects to occur are
forward-looking statements. Forward-looking statements include,
among other things, Management's expectations regarding: (i) the
Financing and its impact on liquidity, capital management,
financial results and the Company's growth and development
opportunities; (ii) the shift in steel industry production methods
towards reducing emissions and green steel production methods and
the Company's participation therein, contribution thereto and
positioning in connection therewith and expected benefits thereof;
and (iii) the Company's growth and opportunities generally.
Risks
Although Champion believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such forward-looking statements involve known and unknown risks,
uncertainties and other factors, most of which are beyond the
control of the Company, which may cause the Company's actual
results, performance or achievements to differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause the actual results to differ materially
from those expressed in forward-looking statements include, without
limitation: (i) the results of feasibility studies; (ii) changes in
the assumptions used to prepare feasibility studies; (iii) project
delays; (iv) timing and uncertainty of industry shift to green
steel and EAF; (v) continued availability of capital and financing
and general economic, market or business conditions; (vi) general
economic, competitive, political and social uncertainties; (vii)
future prices of iron ore; (viii) future transportation costs; (ix)
failure of plant, equipment or processes to operate as anticipated;
* delays in obtaining governmental approvals, necessary permitting
or in the completion of development or construction activities; and
(xi) the effects of catastrophes and public health crises,
including the impact of COVID-19 on the global economy, the iron
ore market and Champion's operations, as well as those factors
discussed in the section entitled "Risk Factors" of the Company's
2023 Annual Report, Annual Information Form and MD&A for the
financial year ended March 31, 2023,
which are available on SEDAR+ at www.sedarplus.ca, the ASX at
www.asx.com.au and the Company's website at
www.championiron.com. 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.
Additional Updates
All of Champion's forward-looking information contained in this
press release is given as of the date hereof or such other date or
dates specified in forward-looking statements 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 the
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
If the Company does update one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those or other forward-looking statements. Champion
cautions that the foregoing list of risks and uncertainties is not
exhaustive. Readers should carefully consider the above factors as
well as the uncertainties they represent and the risks they
entail.
For further information, please contact:
Champion Iron Limited
Michael
Marcotte, CFA
Senior Vice-President, Corporate Development and Capital
Markets
514-316-4858, Ext. 1128
Info@championiron.com
For additional information on Champion Iron Limited, please
visit our website at: www.championiron.com.
This press release has been authorized for release to the market
by the CEO of Champion Iron Limited, David
Cataford.
SOURCE Champion Iron Limited