DGAP-News: Champion Iron Mines signs a Provisional Agreement with Northfield Metals to Finance Exploration and Development of the Cluster 3 Fermont Properties
(firmenpresse) - DGAP-News: Champion Iron Mines Limited / Key word(s): Agreement
Champion Iron Mines signs a Provisional Agreement with Northfield
Metals to Finance Exploration and Development of the Cluster 3 Fermont
Properties
01.10.2012 / 14:18
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NEWS RELEASE
Champion Iron Mines signs a Provisional Agreement with Northfield Metals to
Finance Exploration and Development of the Cluster 3 Fermont Properties
Toronto (Canada), September 28, 2012 - CHAMPION IRON MINES LIMITED (TSX:
CHM; OTCQX:CPMNF; FSE: P02) ('Champion' or the 'Company') is pleased to
announce the signing of a binding provisional agreement (the 'Agreement')
with Northfield Metals Inc. ('Northfield') defining the terms granting
Northfield an option to acquire a 65% interest in the Company's seven
Cluster 3 properties (the 'Cluster 3 Property') located in the southern
portion of the Labrador Trough in northeastern Quebec.
Under the terms of the Agreement, Northfield can earn a 65% interest in the
Cluster 3 Property by expending C$ 6 million in staged exploration and
development work expenditures on the Cluster 3 Property, making cash
payments to Champion totalling C$ 1 million, and issuing Champion 2.5
million shares - all over a 4-year period.
After Northfield completes its earn-in, Champion and Northfield would form
a joint venture reflective of their proportionate ownership interests in
the Cluster 3 Property in order to explore and develop the retained mineral
concessions. Northfield will retain a right-of-first-refusal on any part or
all of Champion's proportionate interest in each of the mineral concessions
comprising the Cluster 3 Property. There is also a 10 km area of influence
around each mineral concession. In the event that a joint venture party's
interest is diluted below 10%, it will be converted to a 1% royalty, half
of which may be purchased for $3,000,000. The Agreement is subject to the
receipt of all required regulatory approvals, including that of the Toronto
Stock Exchange.
Mr. Thomas Larsen, President and CEO of Champion states 'We are pleased to
have Northfield involved in the exploration and development of the Cluster
3 Property and welcome their participation in the Fermont Iron Ore District
where Champion has achieved a significant amount of exploratory success.
Champion's management is of the opinion that Cluster 3 has excellent
potential to host a significant iron resource and we look forward to
participating in the property's advancement through this option and joint
venture. This transaction enables Champion to continue with its strategy of
focusing on the development of its flagship Consolidated Fire Lake North
Property into a producing mine and in this respect we are looking forward
to receiving the Fire Lake North feasibility study'.
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 Quebec 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 Quebec 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.
Champion's Fermont Iron Holdings, including its flagship Fire Lake North
Project, are located in Canada's major iron ore producing district, in
close proximity to five producing iron mines. Fire Lake North is located
immediately adjacent to and north of ArcelorMittal's operating Fire Lake
Mine and 60 km south of Cliffs Natural Resources Inc.'s Bloom Lake Mine in
northeastern Quebec. Champion's team and advisory board includes mining and
exploration professionals with the mine operations experience to build the
Fire Lake North Project into a producing mine.
For further information please contact:
Thomas G. Larsen, President and CEO, or Jorge Estepa, Vice President at
Tel: (416) 866-2200.
For additional information on Champion, 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 Fire Lake North Project. 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). 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 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 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.
End of Corporate News
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