Champion Iron shares climb on $275m deal with Nippon, Sojitz
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The news: Champion Iron shares advanced in morning trade after the iron ore explorer entered a joint partnership with Japan's Nippon Steel and Sojitz Corporation over its Kami project in Canada.
Shares were up 4.4% to $5.03 at 11:30am AEST, having dropped around 18% over the last 12 months. The rise tracked a broader rally by Australian iron ore miners, with Rio Tinto, Fortescue and BHP all climbing more than 2%.
Champion Iron enters agreement with Nippon, Sojitz on Kami project
The news: Champion Iron has entered a definitive agreement with Nippon Steel and Sojitz Corporation for the joint ownership and development of its Kamistiatusset (Kami) iron ore mine in Canada.
The numbers: The partnership, which was first announced in December, will see Japan-based Nippon and Sojitz contribute an initial C$245 million ($275 million) for a 49% interest, with Montreal-based Champion retaining a 51% stake.
Nippon (30%) and Sojitz (19%) will hold minority positions in the project, with the companies entitled to proportional allocations of Kami's iron ore production.
The context: Champion CEO David Cataford said the agreement marks a "significant milestone" for the Kami project. The new investment will enable the miner to advance the project without impacting its financial liquidity, he noted.
The completion of the agreement, expected during the second half of the calendar year, is subject to regulatory clearance in China, as well as other customary closing conditions.
Champion, Nippon and Sojitz will share development and construction costs of the project should they make a positive final investment decision (FID) following the completion of a definitive feasibility study (DFS). The DFS is expected to be completed in mid-2026 and the projected construction period is estimated at 48 months following FID.
The source: ASX
