Ashurst has advised Champion Iron Limited (Champion) (listed on ASX and TSX) on the acquisition of Bloom Lake Mine and acquisition financing by way of private placement.

Champion acquired the following assets from Cliffs Quebec Iron Mining and affiliated entities (Cliffs):

* Bloom Lake Mine - all mine site infrastructure and mining equipment and processing facility at the 'Bloom Lake Mine'
* Rail Assets - a 36km short-line railway that connects the Bloom Lake Mine to the Northern Land Company railway; and
* Quinto Claims - 458 mineral claims which at the Peppler Property and the Lamelee Property.

The Bloom Lake Mine was acquired by Cliffs in 2011 for US$5 billion and has been on care and maintenance since December 2014. The Bloom Lake Mine and other assets were acquired by Champion after a sale and investor solicitation procedures approved by the Québec Superior Court pursuant to restructuring proceedings under the Canadian Companies' Creditors Arrangement Act.

To fund the acquisition Champion conducted an underwritten private placement which raised $30 million and introduced three new cornerstone investors (Wynnchurch Capital LLC, Resources Capital Fund and Resources Quebec). The placement almost doubled Champion's capital base and was approved by shareholders under Listing Rule 7.1 on 31 March 2016.
Resources Quebec is also investing C$20 million at the subsidiary level through a C$6 million loan and investing C$14 million in equity, giving it a 36.8% interest in the holding company of the assets.

The acquisition and financing is a transformation transaction for Champion - acquiring a large mine with significant upside when production commences, a fundraising which has almost doubled the capital base of the company and three new cornerstone investors.

The Ashurst team was led by consultant Gary Lawler with assistance from senior associate Stuart Dullard (Corporate).