Champion Iron Limited (TSX: CIA, ASX: CIA, OTCQX: CIAFF) announced on June 25, 2025, that its wholly owned subsidiary, Champion Iron Canada Inc., is initiating an offering of US$450 million in senior notes due 2032. The notes will be senior unsecured obligations guaranteed by Champion and certain subsidiaries, with interest payable semi-annually. The company plans to use the proceeds primarily to repay outstanding amounts under its senior credit facilities and for general corporate purposes.
This move reflects Champion Iron’s ongoing efforts to manage its capital structure efficiently and support its operations in the iron ore sector. The notes will be offered exclusively in the United States to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons outside the United States in compliance with Regulation S. In Canada, the notes will be sold on a private placement basis under prospectus exemptions, and in Australia only to sophisticated or professional investors as defined by local regulations. The notes will not be listed on the Toronto Stock Exchange or the Australian Securities Exchange.
Champion Iron owns and operates the Bloom Lake Mining Complex through its subsidiary Quebec Iron Ore Inc. Located in the Labrador Trough near Fermont, Québec, Bloom Lake is an open-pit mine featuring two concentration plants powered mainly by renewable hydroelectric energy. The operation has a combined nameplate capacity of 15 million wet metric tonnes per year (wmt/y) and produces a high-grade 66.2% iron (Fe) ore concentrate with low contaminants. The company has demonstrated the ability to produce direct reduction quality iron ore concentrate with up to 67.5% Fe.
Champion is investing in upgrading half of Bloom Lake’s capacity to produce pellet feed iron ore with Fe content up to 69%, targeting the direct reduction market. This premium product commands a price above the Platts IODEX 62% Fe benchmark, reflecting its high purity and low impurity profile. The company ships its concentrate by rail to the port of Sept-Îles, Québec, for global distribution to markets in China, Japan, the Middle East, Europe, South Korea, India, and Canada.
Beyond Bloom Lake, Champion Iron owns the Kamistiatusset mining properties, which have an estimated annual production capacity of 9 million wmt of direct reduction quality iron ore grading above 67.5% Fe. The Kamistiatusset site benefits from proximity to existing infrastructure and is located just a few kilometres southeast of Bloom Lake.
In December 2024, Champion entered a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership aimed at developing the Kami Project. This includes completing a definitive feasibility study to assess the project’s potential. The Kami Project is part of Champion’s broader portfolio of exploration and development properties in the Labrador Trough, including the Cluster II portfolio located within 60 kilometres south of Bloom Lake.
The issuance of US$450 million in senior notes due 2032 marks a significant step in Champion Iron’s financial strategy. By refinancing existing credit facilities, the company can potentially reduce interest costs and extend debt maturities, providing greater financial flexibility. The notes are not being registered under the U.S. Securities Act, which limits their sale to qualified institutional buyers and non-U.S. investors, reflecting a targeted capital raising approach.
Champion Iron’s latest bond offering underscores its focus on maintaining a solid financial foundation while advancing its high-grade iron ore production and development projects. With a strong asset base in Québec’s Labrador Trough and strategic partnerships in place, the company aims to capitalize on the growing demand for premium iron ore products, especially those suitable for direct reduction steelmaking.
