Ashurst acts in major mining financing in Canada

The financing will fund the start of work on a large iron mine, which the law firm helped buy in 2016

Ashurst acts in major mining financing in Canada
Ashurst fielded a team from Australia for a large financing in Canada.

The firm advised long-standing client Champion Iron on its C$300m master financing arrangements. The financing will fund the start of work at the company’s Bloom Lake Iron Ore Mine in the Labrador Trough in Quebec, a mine Ashurst helped buy last year.

Champion Iron raised C$55m through a private placement to institutional investors and a convertible debenture issued to Glencore International, the world’s largest mining company by revenue. This raising will be contributed to its subsidiary, Quebec Iron Ore, which owns the Bloom Lake mine.

Ressources Québec, Champion Iron's joint venture partner, contributed C$26m. Quebec Iron Ore has also entered into a US$80m loan from Sprott Resource Lending and a US$100m loan from Caisse de depot et placement du Quebec.

In addition to the acquisition of the Bloom Lake mine, Ashurst also advised on the recent C$40m bridge financing arrangements.

The firm looks forward to seeing operations at the Bloom Lake Mine commence in the near future, said partner Stuart Dullard, who jointly led the Ashurst team with partner Sarah Dulhunty.

The Ashurst team also included partner Graeme Tucker. They were assisted by consultant Gary Lawler, and lawyers Kristen Wong and Andrew Vumbaca.

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