- Champion Iron (CIA) signs a deal to acquire an ore pelletizing facility for C$2.5 million (A$2.7 million)
- The Pointe Noire iron ore facility is located in Quebec, Canada, and sits directly adjacent to the port facilities Champion currently uses
- Champion Iron says the facility requires ‘significant investments’ before re-commissioning and has engaged an unnamed international steelmaker to complete a feasibility study
- Subject to positive findings, a joint venture may be formed to produce iron ore pellets for sale to third parties, including the feasibility partner
- Champion Iron last traded 3.7 per cent in the green at $7 per share on May 17
Champion Iron (CIA) has signed a deal to acquire an ore pelletizing facility in Québec.
The Australian high-grade mining and development company signed the definitive purchase agreement through one of its subsidiaries.
The company is acquiring the Pointe Noire Iron Ore Pelletizing Facility in Québec, which is located directly adjacent to the port facilities that Champion currently uses.
The all-cash deal is worth approximately C$2.5 million (A$2.7 million).
However, the multi-billion-dollar company expects the plant will need ‘significant investments’ prior to re-commissioning to maximise productivity.
As part of this, Champion entered a memorandum of understanding (MoU) with an unnamed international steelmaker to complete a feasibility study. The study will evaluate what it would entail to recommission the facility in order to produce direct reduction grade pellets.
Subject to results of the study, the MoU outlines a framework for a joint venture to
produce iron ore pellets for sale to third parties, including the feasibility partner.
CEO David Cataford said the acquisition of the pellet plant marks a “strategic opportunity” to contribute to the green steelmaking industry.
“Our local support, high-purity iron ore products, access to world class infrastructure and operational track record, enabled us to attract a major international steel producer for a potentially significant large-scale project in Québec,” Mr Cataford said.
Champion Iron last traded 3.7 per cent in the green at $7 per share on May 17.