Mr. Michael Marcotte reports
CHAMPION IRON ANNOUNCES THAT IT WILL NOT PROCEED WITH THE PROPOSED RE-DOMICILIATION TO CANADA
Champion Iron Ltd.'s board has determined that the company will not proceed with the previously announced proposal to redomicile from Australia to Canada by way of a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) and the liquidation of the company due to the current market volatility and global uncertainty associated with the COVID-19 virus.
As a result of such current market volatility and global uncertainty, the company may not be able to realize some of the anticipated benefits of the redomicile. Accordingly, the board does not consider that the redomicile is in the best interests of the shareholders of Champion at this time. The company has decided to terminate the scheme of arrangement and will withdraw the application to seek orders from the Federal Court of Australia approving the scheme of arrangement.
The board may consider implementing a redomicile from Australia to Canada at a later point in time depending on market conditions.
The decision to terminate the redomicile will not have any impact on the company's staff, assets or operations, which remain predominantly based in the province of Quebec, Canada. The company's strategy will not be affected by today's announcement, and its shares remain listed in Canada on the Toronto Stock Exchange and in Australia on the Australian Securities Exchange.
About Champion Iron Ltd.
On April 11, 2016, the company, through its subsidiary Quebec Iron Ore Inc., acquired the Bloom Lake assets from bankruptcy protection. Following the release of a feasibility study on Feb. 16, 2017, the company recommissioned Bloom Lake in February, 2018, which completed its first shipment on April 1, 2018. On Aug. 16, 2019, the company finalized the terms of an agreement with Ressources Quebec Inc. whereby the company acquired Ressources Quebec's 36.8-per-cent equity interest in Quebec Iron Ore Inc. and now owns 100 per cent of Quebec Iron Ore, which owns the Bloom Lake mine.
Located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Que., and adjacent to established iron ore producers, the Bloom Lake mine is an open-pit truck-and-shovel operation with a concentrator.
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