Champion Minerals Inc.

Champion Minerals Inc.

November 26, 2009 13:21 ET

Champion Minerals Announces $3,000,000 Financing

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2009) - CHAMPION MINERALS INC. ("Champion" or the "Company") (TSX VENTURE:CHM)(FRANKFURT:P02) is pleased to announce that it intends to complete a non-brokered private placement (the "Private Placement") of up to 2,727,272 Flow-Through Units ("F-T Units") of Champion at a price of $0.55 per F-T Unit, as well as up to 3,000,000 Units ("Units") of Champion priced at $0.50 per Unit for total proceeds of up to $3,000,000. The Private Placement is subject to TSX Venture Exchange and regulatory approval. All securities issued pursuant to the Private Placement will be subject to the applicable statutory, exchange and regulatory hold period.

Each F-T Unit will consist of one common share (the "Common Shares") to be issued on a "flow-through" basis under the Income Tax Act (Canada) and one half of one common share purchase warrant (the "F-T Unit Warrants"). Each whole F-T Unit Warrant will have a term of 18 months from the Private Placement closing date and will entitle the holder to purchase one Common Share at a price of $0.85 per share.

Each Unit will consist of one Common Share and one half of one common share purchase warrant (the "Unit Warrant"). Each whole Unit Warrant will have a term of 18 months from the Private Placement closing date and will entitle the holder to purchase one Common Share at a price of $0.75 per share.

The net proceeds of the Private Placement will be used for working capital and to finance the continued exploration programs at Champion's Fermont Iron Property (the "Property") and in particular the Property's 25km2 Mammoth Zone on the Harvey-Tuttle Claim Block.

The Fermont Iron Property

Champion previously announced an initial Mineral Resources Estimate ("MRE") on the Property's Bellechasse and Fire Lake North Claim Blocks ("Bellechasse" and "Fire Lake North") under National Instrument ("NI") 43-101 guidelines (refer to the Company's news release dated November 19, 2009).

The MRE amounted to 503.3 million tonnes grading 28.0% Iron in the Inferred(i) Mineral Resources category, of which 215.1 million tonnes grading 28.7% Iron are on Bellechasse, and 288.2 million tonnes grading 27.5% Iron are on Fire Lake North (all at a 15% Iron cut-off grade). (i)Inferred Mineral Resources are that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling gathered through appropriate techniques from drill holes and outcrops, and reasonably assumed, but not verified, geological and grade continuity. There has been insufficient exploration to define any of the resources as Indicated or Measured Mineral Resources and there is no guarantee that further exploration will upgrade the Inferred Mineral Resources to Indicated or Measured Mineral Resources. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Champion has under option a land package of 384.6km2 in 16 strategic claim blocks grouped into 3 clusters comprising the Property. Champion had previously announced 8 claim blocks with historical Mineral Resources of 694 million tonnes grading 30.4% Iron, but now 2 of the 8 claim blocks (Bellechasse and Fire Lake North) host current MRE. As a result, the 6 remaining claim blocks host historical Mineral Resources of 578 million tonnes grading 30.4% Iron.

The Company is currently in the second year of an option agreement with Fancamp Exploration Ltd. (TSX VENTURE:FNC) and The Sheridan Platinum Group Ltd. (collectively, the "Vendors") on the Property, pursuant to a binding provisional option agreement, dated May 21, 2008, and the definitive option and joint venture agreement (the "Agreement"), dated August 31, 2009. Under the terms of the Agreement, Champion can earn an initial 65% interest in the Property at the Company's option by expending C$6 million in staged exploration and development work expenditures on the Property, making cash payments to the Vendors totalling C$1 million, and issuing 2.9 million shares to the Vendors, all over a 4-year period, with the Vendors retaining a 3% Net Smelter Returns royalty, one third of which may be purchased by Champion for C$3 million. The Agreement also includes a right of first refusal on the Lamelee Lake Claim Block, as announced by the Company on May 13, 2009.

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 and Labrador. The Company's projects include the Attikamagen Iron Property, located in western Labrador and northeastern Quebec, the Fermont Iron Property in northeastern Quebec and the Powderhorn and Gullbridge Base Metal Projects located in central Newfoundland.

The technical information in this news release was prepared, revised and approved by Jean Lafleur, P. Geo., Director and Technical Advisor to the President and CEO of Champion, a Qualified Person under NI 43-101 regulations.

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. 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.

Contact Information

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