Sprott and big Quebec pension fund step in to restart iron ore mine closed in 2014
The cash keeps pouring in to Champion Iron (TSX:CIA) and its subsidiary, Quebec Iron Ore (QIO), which is planning on restarting the idled Bloom Lake Mine in the Canadian province of Quebec.
Earlier this month Montreal-based Champion announced that Sprott Resource Lending and la Caisse de dépôt et placement du Québec- a large pension fund – will provide debt financing for the project totalling USD$180 million.
The large loan follows the granting of a $40 million bridge financing back in May plus offtake agreement. The combination of $26 million in debt and $14 million in equity is being put towards upgrades at the mine and processing facilities.
The debt component consists of a $20 million loan from Sojitz Corporation, together with a $6 million loan from Ressources Québec Inc., which owns 36.8% of QIO. The equity share is split between Ressources Québec and the Quebec government.
Sojitz has also agreed to buy up to 3 million tonnes a year from Quebec Iron Ore upon the mine restarting. The agreement is for an initial five years, to be renewed in five-year terms.
For the rest of this article: http://www.mining.com/bloom-lake-mine-gets-us180m-loan/