Champion Announces Closing of Financing Arrangements FOR Approximatively CDN$300 Million
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CHAMPION ANNOUNCES CLOSING OF FINANCING ARRANGEMENTS
FOR APPROXIMATIVELY CDN$300 MILLION
Montréal (Québec), Canada , October 16, 20 17: Champion Iron Limited (ASX: CIA) (TSX: CIA)
(the “Corporation” or “ Champion”) is pleased to announce that it has completed a series of
previously a nnounced financing arrangements, raising approximately CDN$300 million towards the
restart of the ope rations of the Bloom Lake iron or e mine located near Fermont, Qué bec (“Bloom
Lake”).
Debt Financings
As previously disclosed, the Corporation, through its subsidiary Québec Iron Ore Inc. (“ QIO”), recently
entered into definitive agreements in connection with (i) a 5-year senior secured loan in the aggregate
amount of US$ 80 million provided by Sprott Private Resource Lending (Collector), LP (“ Sprott”) and
carrying interest at a rate of 7.5% plus the greater of US dollars 3 month LIBOR and 1% per annum;
and (ii) a 7 -year subordinated loan in th e aggregate amount of US$10 0 million provided by
CDP Investissements Inc., a wholly -owned subsidiary of Caisse de dépôt et placement du Québec
(“Caisse”) and carrying interest at a rate of 12% for the first year and thereafter at an interest rate
linked to the price of iron ore for subsequent years (collectively, the “Debt Financing s”). As of
October 16, 2017, all of the precedent conditions to the funding of the proceeds under the Debt
Financings have been met.
In connection with the Debt Financings, the Corporation issued, as of the date hereof, an aggregate of
3,000,000 ordinary share purchase warrants to Sprott and an aggregate of 21,000,000 ordinary share
purchase warrants to Caisse , each warrant entitling its holder to purchas e one ordinary share of
Champion at a price of CA$1.125, as approved by the shareholders of Champion on August 18, 2017.
Fonds Capital Mines Hydrocarbures (CMH)
Concurrently with the closing of the Debt Financing, the Fonds Capital Mines Hydrocarbures (“CMH”),
managed by Ressources Québec Inc., funded its CDN$26.2 million equity contribution to QIO.
Subscription Receipt Offering
Further to the previously announced non-brokered sale of a CDN$31.2 million subordinated
unsecured mandatory convertible debenture to Glencore International AG, the completion of the Debt
Financing and the funding of the contribution of CMH, the condition s precedent to the release of the
net proceeds of the public offering of subscription receipts (the “Subscription Receipts”) completed
in September 2017 (the “Offering”) have been met. Accordingly, the net proceeds of the Offering, in
an amount of CDN$ 18,312,980.97 have been released to the Corporation and the
21,033,508 Subscription Receipts issued by the Corporation will be automatically exchan ged in
accordance with their terms on a one -for-one basis for ordinary shares of Champion, effective as of
the date hereof. Trading in the Subscription Receipts (TSX: CIA.R) will be halted effective immediately
and the Subscription Receipts will be delisted at the close of business today.
About Champion
Champion is an iron development and exploration company, focused on developing its significant iron
resources in the south end of the Labrador Trough in the province of Québec. Following the
acquisition of its flagship asset, the Bloom Lake iron ore property, the Co rporation’s main focus is to
implement upgrades to the mine and processing infrastructure it now owns while also advancing
projects associated with improving access to global iron markets, includi ng rail and port infrastructure
initiatives with government and other key industry and community stakeholders.
Champion’s management team includes professionals with mine development and operations
expertise who also have vast experience from geotechnical work to green field development, brown
field management including logistics development and financing of all stages in the mining industry.
For further information please contact:
Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514-316-4858
David Cataford, COO at Tel. +1 514-316-4858
For additional information on Champion Iron Limited, please visit our website at
www.championiron.com
Forward-Looking information
This news release includes certain information that may constitute “forward-looking information” under
applicable Canadian securities legislation. All statements, other than statements of historical facts,
included in this news release that address the release of the net proceeds of the Offering to the
Corporation, the expected restart da te of Bloom Lake as well as future activities, events,
developments or financial performance constitute forward -looking information. The use of any of the
words “will”, “ expect”, “anticipate”, “intend”, “believe”, “plan” , “potential”, “outlook”, “forecast”,
“estimate” and similar expressions are intended to identify forward -looking information. 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 final shor t
form prospectus relating to the Offering, annual information form, management’s discussion and
analysis and other securities regulatory filings made by Champion on SEDAR (including under the
heading “Risk Factors ” therein). 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 a ny 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.