QUEBEC INVESTS 26 MILLION FOR THE BLOOM LAKE MINE (The Silver Times – February 22, 2016)

The collapse of the iron market does not frighten Quebec which loosens again the purse strings to deploy the Northern Plan. The government yesterday announced plans to invest 26 million in the resumption of mining assets Bloom Lake on the North Shore, just sold to Champion Iron Limited.

Earlier this month, Quebec stretched 66750000 to get their hands on strategic installations in the Pointe-Noire, in Sept-Îles, which belonged – like the Bloom Lake mine – to Cliffs Natural Resources, which placed its Quebec properties under the protection of the arrangement Act companies’ creditors there one year.

“We want to support more businesses and promising projects in the mining and hydrocarbons sector,” said Minister of Energy and Natural Resources, Pierre Arcand, also responsible for the Northern Plan, in a statement issued in any end of the day.

This is also from the fund Capital Mines hydrocarbons, managed by Ressources Québec, the government will draw 20 million, in addition to pay 6 million to Champion, also through Ressources Québec, to support junior society his plan to keep the mine site for 24 months, until the market recovers.

The money will be committed particularly in the form of ordinary shares and shares with voting rights and participating. The company will, however, complete the “global” financing the transaction before Quebec and Ressources Québec will confirm their participation, subject to the necessary authorizations of the court. On January 26, the Superior Court has endorsed Champion Iron Limited for the purchase of the Bloom Lake mine near Fermont, to 10.5 million.

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