Champion Minerals Inc.
TSX VENTURE : CHM
FRANKFURT : P02

Champion Minerals Inc.

March 26, 2010 15:30 ET

Champion Minerals Amends Option and Joint Venture Agreements

TORONTO, ONTARIO--(Marketwire - March 26, 2010) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) announces the signing of two separate amendment agreements in connection with definitive option and joint venture agreements between Champion and Labec Century Iron Ore Inc. ("LCIOI"), with respect to Champion's wholly-owned Attikamagen Property; and Champion and Copper Hill Resources Inc. ("Copper Hill"), with respect to Copper Hill's wholly-owned Gullbridge and Powderhorn Properties.

Amended Attikamagen Option and Joint Venture Agreement

Under the terms of the Attikamagen option and joint venture agreement ("Attikamagen Agreement") dated May 12, 2008 (as amended July 9, 2009), LCIOI was granted the right to earn up to a 60% interest in the Attikamagen Property by expending up to C$12.5 million in exploration and development work expenditures on the Attikamagen Property over a five year period. The terms of the Attikamagen Agreement were detailed in the Company's news release dated May 13, 2008.

Pursuant to the amendment agreement ("Amended Attikamagen Agreement") the dates in the Attikamagen Agreement by which remaining payments are permitted to be made by LCIOI have been extended by one year and the C$12.5 million exploration expenditures required to be funded by LCIOI to earn up to a 60% interest has been increased by $500,000. Accordingly, LCIOI can earn an initial 51% interest in the Attikamagen Property by funding aggregate exploration and development expenditures of C$7.5 million on or before March 26, 2012, in two remaining yearly increments of C$2.5 million per year in staged expenditures. Pursuant to the Amended Attikamagen Agreement, and after earning the initial 51% interest, LCIOI will have the option to increase its interest in the Attikamagen Property to 56% by expending a further C$2.5 million on or before March 26, 2013, and to 60% by expending an additional C$3 million on or before March 26, 2014. After LCIOI completes its earn-in, LCIOI and Champion will form a joint venture reflective of their proportionate ownership interests in the Attikamagen Property.

Amended Gullbridge and Powderhorn Option and Joint Venture Agreements

Under the terms of the Powderhorn option and joint venture agreement ("Powderhorn Agreement") dated June 11, 2006 (as amended May 5, 2008), Champion was granted the right to earn a 70% interest in the Powderhorn Property. Under the terms of the Gullbridge option and joint venture agreement ("Gullbridge Agreement") dated April 30, 2008, Champion was granted the right to earn up to an 85% interest in the Gullbridge Property.

Pursuant to the amendment agreement between Champion and Copper Hill, the commitments due under the Powderhorn and Gullbridge Agreements are deferred for a period of one year, with the exception of the immediate issuance of 75,000 shares of Champion to Copper Hill (representing one half of the share payment obligation due April 30, 2010, now deferred, pursuant to the Gullbridge Agreement), and Champion's maintenance of all the mining claims comprising the Powderhorn and Gullbridge Properties in good standing during the one year deferral period.

About Champion Minerals Inc.

Champion is an exploration Company focused on discovering and developing significant metal resources in eastern Canada, particularly in the provinces of Quebec and Newfoundland & Labrador. The Company's projects include the Attikamagen Iron Property in northeastern Quebec and western Labrador, the Fermont Iron Property in northeastern Quebec, and the Powderhorn/Gullbridge Base Metal Projects in central Newfoundland. Please visit Champion's website at www.championminerals.com.

The statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Champion Minerals Inc.
    Thomas G. Larsen
    President and CEO
    (416) 866-2200
    or
    Champion Minerals Inc.
    Jorge Estepa
    Vice-President
    (416) 866-2200