DGAP-News: Champion Minerals Inc.: Swiss and China-Based Companies to Make $3.0 Million Strategic Investment in Champion Minerals
(firmenpresse) - Champion Minerals Inc. / Key word(s): Miscellaneous
06.10.2010 16:30
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NEWS RELEASE
Swiss and China-Based Companies to Make $3.0 Million Strategic Investment
in Champion Minerals
- Swiss-based MRI Advisory AG to invest $2.0 million and provide access
to mine development expertise and global iron ore network
- Winner Max Investment Co. Ltd., a Hong Kong incorporated private equity
firm to invest $1.0 million
- Ashwath Mehra, MRI's CEO, appointed to Champion board of directors
Toronto (Canada), October 5, 2010 - Champion Minerals Inc. ('Champion' or
the 'Company') (TSX: CHM; FSE: P02) is pleased to announce that two
companies, one Swiss and one from China, will invest a total of $3.0
million in the Company in a private placement financing (the 'Offering').
No broker, dealer or finder is involved in the private placement and,
accordingly, no commissions or finder's fees are payable in connection with
these transactions.
Zug, Switzerland-based MRI Advisory AG ('MRI'), or associated entities,
will invest $2.0 million, and Winner Max Investment Co., Ltd. of Hong Kong
('Winner Max') will invest $1.0 million.
The Offering is subject to completion of certain closing items and final
regulatory approval. Under the terms of the Offering, Champion will issue
2,222,222 units ('Units') to MRI and 1,111,111 Units to Winner Max, at
$0.90 each. Each Unit consists of one common share and one warrant (a
'Warrant'). Each Warrant entitles the holder to purchase one common share
at a price of $1.20 for the first 24 months and $1.50 thereafter until 36
months after the closing date, when the Warrants expire. The securities
issued under or in connection with the Offering will be subject to a four
month hold period. Champion is also entering into an advisory services
agreement with MRI, to provide strategic planning and technical advice to
the Company.
'We identified Champion as an excellent strategic investment as we believe
it is well positioned within the iron-rich Labrador Trough,' said Ashwath
Mehra, CEO of MRI. 'Champion has the potential to become the area's next
producer of iron ore from its inferred and historical iron resources, which
are estimated at more than 1 billion tonnes'1.
Mr. Mehra added, 'The claim blocks are very well-situated in a developed
and politically stable country near infrastructure that will be beneficial
in a production scenario. We believe that the assets of Champion are
currently undervalued and that there is potential for a significant
increase in the value of the Company as technical milestones are met.'
Thomas Larsen, Champion's President and CEO, remarked, 'We are pleased to
welcome both the MRI Group and Winner Max as major investors in our
company. I anticipate further benefits by adding the MRI group to our team
as we advance development of our Fermont Property and move towards a
Preliminary-Economic-Assessment (PEA) study on our Fire Lake North Claim
Block. MRI, with its successful track record in financing, mine
development, iron ore production, strategic global partnerships and
shipping, will help enhance and unlock the full value of Champion's
assets.'
Mr. Mehra has been appointed to Champion's board of directors, subject to
regulatory approval. He is an economist who has worked in the minerals
industry for over 25 years, starting his career with Philipp Brothers after
which he spent 10 years with Glencore International AG, where he was a
senior partner and ran the Nickel and Cobalt Divisions. He is a co-founder
and Non-Executive Director of Northern Iron Limited (ASX: NFE).
Mick McMullen, a principal of MRI, will join Champion's newly created
advisory board, to provide technical assistance and strategic advice. Mr.
McMullen is a geologist with a BSc (Geology) from the University of
Newcastle, Australia and in excess of 17 years' experience in exploration,
financing, development and operation of mining projects. He most recently
was the Managing Director and a co-founding shareholder of Northern Iron
Limited (http://www.northerniron.com.au), an ASX listed iron ore company.
About MRI ADVISORY AG
MRI Advisory AG is a member of the MRI Group of Companies, a leading
investment and trading group in the commodities arena. MRI Trading AG,
another group member, is a top-tier trader of concentrates and other
non-ferrous raw materials. With over US$3 billion in annual sales, MRI
Group has available credit lines in excess of US$800 million. Based in Zug,
Switzerland, the Group has a global presence through its offices in
Beijing, Shanghai, Santiago do Chile, Lima, Lubumbashi - DRC, Johannesburg,
New Delhi and Brisbane. Please visit MRI's website for additional
information at http://mritrading.ch.
About Winner Max Investment Co. Ltd.
Winner Max Investment Co. Ltd., is a Hong Kong incorporated equity firm
with an investment focus in overseas natural resources opportunities. Its
team has built extensive relationships within the Chinese natural resources
State Owned Enterprises circle.
About Champion Minerals Inc.
Champion is a junior exploration Company focused on discovering and
developing significant metal resources in eastern Canada, particularly in
northeastern Quebec and in Labrador and Newfoundland. The Company's
projects include the Fermont Iron Property in northeastern Quebec, the
Attikamagen Iron Property in western Labrador and northeastern Quebec and
the Powderhorn and Gullbridge Base Metal Projects in central Newfoundland.
Please visit Champion's website at www.championminerals.com.
For further information please contact Thomas G. Larsen, President and CEO,
and Jorge Estepa, Vice-President, at 1 (877) 448 2201 or (416) 866-2200.
All historical mineral resources outlined in the text are non-compliant
to NI 43-101 Mineral Resources and Mineral Reserves standards, and should
therefore not be relied upon. A Qualified Person has not done sufficient
work to upgrade or classify these historical mineral resources as current
NI 43-101 compliant Mineral resources. Inferred Resources are part of a
National Instrument 43-101 Mineral Resource for which the estimated
quantity and grade of a deposit, or a part thereof, that is determined on
the basis of limited sampling, but for which there is sufficient geological
information and a reasonable understanding of the continuity and
distribution of metal values to outline a deposit of potential economic
merit. There is no guarantee that further exploration will upgrade the
Inferred Resources to Indicated and/or Measured Resources.
Statements made in this news release that are not historical facts are
'forward-looking statements' and readers are cautioned that any such
statements are not guarantees of future performance, and that actual
developments or results, may vary materially from those in these
'forward-looking' statements.
06.10.2010 16:30 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Datum: 06.10.2010 - 16:30 Uhr
Sprache: Deutsch
News-ID 32314
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