DGAP-News: Champion Iron Mines Limited: Champion Iron Mines Terminates User Contract with Sept-Îles Port Authority
(firmenpresse) - DGAP-News: Champion Iron Mines Limited / Key word(s): Contract
Champion Iron Mines Limited: Champion Iron Mines Terminates User
Contract with Sept-Îles Port Authority
02.07.2013 / 15:08
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Champion Iron Mines Terminates User Contract with Sept-Îles Port Authority
Toronto (Canada), July 02, 2013 - CHAMPION IRON MINES LIMITED (TSX: CHM;
OTCQX:CPMNF; FSE: P02) ('Champion', or the 'Company') announces that on
June 28, 2013 it provided notice to the Sept-Îles Port Authority
terminating the July 2012 agreement related to the multi-user port
facilities proposed at Pointe Noire, Sept-Îles, Quebec. The agreement
required Champion to make payments totalling of $25.6 million by July 1,
2013.
After conducting detailed feasibility study work on a Quebec private
railway project and extensive discussions with the Canadian National
Railway Company ('CN') during the 2011-12 period, Champion agreed to
support the CN North Shore Railway proposal and signed CN's Collaboration
Framework Agreement ('CN CFA') in August 2012. The CN North Shore Railway
became Champion's leading rail transportation strategy.
In February 2013, CN announced that work on the CN North Shore Railway
feasibility study was being suspended and CN provided written notice to
Champion that the CN CFA was terminated. Upon receiving CN's notice,
Champion reactivated its alternative Quebec railway strategy and commenced
discussions with various potential private and public partners to develop a
multi-user railway collaborative framework for the construction, financing
and operation of the railway. The Company has been working diligently over
the past few months and felt it could reach an alternative rail
transportation solution prior to the July 1, 2013 payment date stipulated
in the Port Authority agreement. Unfortunately, the multi-user railway
collaborative framework process had not reached a critical point in terms
of both public and private support and Champion determined that it was in
the Company's best interest to terminate its agreement with the Port
Authority at the present time.
Tom Larsen, Champion's President and CEO, commented, 'The past year has
been a very challenging period for iron ore developers and we were
disappointed with a number of recent developments including the decision by
the CN to suspend its feasibility study on a new multi-user rail line to
provide rail services from the Labrador Trough to the Port of Sept-Îles.'
Nonetheless, under the circumstances we believe it is prudent and in the
best interest of our shareholders at this time to take a step back and
reassess Champion's strategic options and protect the Company's financial
position. He added, 'We remain committed to developing Champion's flagship
Consolidated Fire Lake North Project and securing transportation and port
handling services that will permit the Company to place among the lowest
cost iron producers in the Labrador Trough.'
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.
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 Consolidated 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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Datum: 02.07.2013 - 15:08 Uhr
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News-ID 275109
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