TORONTO, ONTARIO--(Marketwired - Jul 26, 2013) - CHAMPION IRON MINES LIMITED ("Champion" or the "Corporation") (CHM.TO) (CPMNF) (P02.F) is pleased to announce that it has acquired from Copper Hill Resources Inc. (the "Vendor") the Vendor's remaining 30% and 49% interests in the Joint Ventures covering the Powderhorn and Gullbridge base metal projects, respectively, both of which are located in central Newfoundland.
Under the terms of the agreement, Champion has issued to the Vendor 1,000,000 common shares from treasury and has agreed to the Vendor retaining a 1% royalty (the "Royalty") in the Gullbridge Property subject to the Corporation's right to buy-down the Royalty in its entirety at any time by electing to either pay the Vendor $1 million or issue to the Vendor a further 1 million common shares. Champion was also granted the right of first refusal on any sale, transfer, mortgage or grant of security interest or any other disposition or encumbrance in the Royalty, in whole or in part, by the Vendor, at any time.
The common shares issued in connection with this agreement are subject to a resale restriction for four months plus one day from the closing date.
About Champion Iron Mines Limited
Champion is an iron exploration and development company with offices in Montreal and Toronto, and is focused on developing its significant iron resources in the provinces of Québec and Newfoundland & Labrador. Champion holds a 100% interest in the Fermont Iron Holdings and a 44% interest in the Attikamagen Iron Project located in both Québec and Labrador. The Attikamagen Project is under option to Labec Century Iron Ore Inc. ("Labec"), a subsidiary of Century Iron Mines Corporation, under which Labec can earn up to a 60% interest. Labec has requested a transfer of a further 4% to increase Labec's holding to 60% under its option agreement with Champion and to further increase Labec's interest and dilute Champion's interest pursuant to ongoing exploration programs. Champion is undertaking its due diligence investigations with respect to the requests.
Champion's Fermont Iron Holdings, including its flagship Consolidated Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to five 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. 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.
This press release has been prepared by Champion Iron Mines Limited and no regulatory authority has approved or disapproved the information contained herein.