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Champion Iron Mines completes arrangement with Mamba Minerals

Mining News - Published on Thu, 03 Apr 2014

Champion Iron Mines Limited and Mamba Minerals Limited announced 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 company resulting from the business combination is now known as Champion Iron Limited.

As of today's date, New Champion's ordinary shares are trading on the Toronto Stock Exchange 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 AUD 10 million equity financing at AUD 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.

Mr Michael O'Keeffe has been appointed as Executive Chairman and Mr Thomas Larsen as the CEO of New Champion.

Mr Thomas Larsen said that "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. Mr 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."

Mr Michael O'Keeffe said 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."

Source – Strategic Research Institute, Steel Guru

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Posted By : admin on Thu, 03 Apr 2014
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