Champion Iron buys Bloom Lake for $10.5M

摘要

Champion Iron (TSX: CIA; ASX: CIA) is taking advantage of the commodities crash to snatch the shuttered Bloom Lake iron ore mine in the Labrador Trough for a fraction of its previous purchase price. Champion has agreed to buy the mine and related rail and mineral assets in Quebec from creditors for $10.5 million in cash, as iron ore prices sink below US$40 per tonne owing to oversupply and slumping Chinese demand. The company will also assume environmental obligations, including $41.7 million in reclamation liabilities, and the replacement of $1.1 million of bonds.