Ashurst has advised Champion Iron Limited (Champion Iron) in raising C$40 million in bridge financing to assist in financing the restart of the Bloom Lake Mine Project at its subsidiary level Quebec Iron Ore Inc. (the subsidiary which owns the Bloom Lake Mine).

The fundraising comprised $26 million in debt and $14 million in equity. The debt component consists of a $20 million loan from Sojitz Corporation, together with a $6 million loan from Ressources Québec Inc. The $14 million equity consists of a proportionate contribution from two shareholders of Bloom Lake Mine, namely Champion Iron and the government of Québec. Champion Iron funded its equity contribution from the issuance of a $10 million Convertible Debenture issued to Altius Minerals Corporation.

At the same time as the bridge financing, Champion Iron entered into an off-take agreement with Sojitz Corporation, a major trading company based in Tokyo, Japan, pursuant to which Sojitz will purchase up to 3,000,000 DMT per annum after the re-commencement of commercial operations at the Bloom Lake Mine.

The fundraising is the first step in Champion Iron's financing of the recommissioning of the Bloom Lane Mine. Champion Iron has foreshadowed that it is in advanced discussions regarding Master Financing to fund recommissioning of the Bloom Lake Mine.

Lead partner on the deal Stuart Dullard (Corporate) said: "We are thrilled to work with the Champion Iron team in the first step to financing the Bloom Lake Mine after having worked with them on the acquisition of the mine in 2016."

Stuart was assisted by consultant Gary Lawler and lawyer Tom Jalland (Corporate).