Ashurst has advised Champion Iron Limited (Champion Iron) on its C$300 million master financing arrangements to fund commencement of work at its Bloom Lake Iron Ore Mine in the Labrador Trough in Quebec.

Champion Iron raised C$55 million through a private placement to institutional investors and a convertible debenture issued to Glencore International AG. Champion Iron will contribute these funds to its 64% subsidiary Quebec Iron Ore Inc., which owns the Bloom Lake Iron Ore Mine. Champion Iron's joint venture partner, Ressources Québec Inc., which owns the remaining 36% Quebec Iron Ore Inc., also contributed C$26 million. In conjunction with the equity financing, Quebec Iron Ore Inc. entered into a US$80 million 5-year senior secured loan from Sprott Resource Lending and a US$100 million 7-year subordinated loan from Caisse de depot et placement du Quebec.

The fundraising is the next step in Champion Iron's financing of the recommissioning of the Bloom Lake Iron Ore Mine. Ashurst advised Champion Iron on the acquisition of the Bloom Lake Mine in 2016 and on the recent C$40 million bridge financing arrangements in June.

Partner Stuart Dullard (Corporate) said: "It was a privilege to work with the Champion Iron team on this major step towards recommencing operations at the Bloom Lake Iron Ore Mine. After having worked with the Champion Iron team on the acquisition of the Bloom Lake Mine in 2016 and the bridge financing arrangements earlier in the year, we are delighted to have assisted with the master financing arrangements and look forward to seeing operations at the Bloom Lake Mine commence in the near future. The progress the Champion Iron team has made in such a short space of time is a great testament to quality and drive of the management team and board."

The team was led by partners Sarah Dulhunty and Stuart Dullard (Corporate) with partner Graeme Tucker (Finance). They were assisted by consultant Gary Lawler (Corporate) and lawyers Kristen Wong and Andrew Vumbaca (Finance).