Quebec Iron Ore completes $312 million term loan to decarbonize steelmaking

Champion Iron (TSX: CIA; ASX: CIA; OTCQX: CIAFF) reports that its subsidiary Quebec Iron Ore has been granted a new $312.2-million (US$230 million) term loan facility that matures in November 2028, with  no principal repayment until mid-2026. As well, the existing $542.9 million revolving credit facility has been extended to November 2027 from May 2026.

Champion CEO David Cataford said in a release, “We thank our team of financial partners who share our vision to provide a solution for the green steel supply chain. The closing of the financing, in addition to our robust financial position and operational cash flows, enables our company to maintain its conservative capital management approach while increasing our flexibility to consider additional organic growth opportunities.”

Quebec Iron Ore currently operates the Bloom Lake iron ore mine, which has a current production rate of 7.4 million t/y of high-grade 66.2% iron concentrate. The Phase II expansion will boost output to 15 million t/y over a life of 20 years. The June 2019 feasibility study estimated an after-tax net present value with an 8% discount of $2.38 billion and an internal rate of return of 33.4% for both phases combined. Enjoy a virtual tour of the Bloom Lake iron ore mine on www.MineraiFerQuebec.com/?lang=en.