TORONTO, ON--(Marketwired - April 11, 2016) - Michael O'Keeffe, Chairman and Chief Executive Officer of Champion Iron Limited ("Champion"), announced today that he has acquired an additional interest in Champion.
Pursuant to an offering, on a private placement basis, of an aggregate of 187,500,000 ordinary shares of Champion (the "Shares"), at a price of $0.16 per Share completed as of April 11, 2016 (the "Private Placement"), Prospect AG Trading Pty Ltd. ("Prospect"), a private company controlled by Mr. O'Keeffe, acquired 21,875,000 Shares and was granted options to acquire 7,500,000 additional Shares at a price of $0.25 per Share (the "Compensation Options").
On April 11, 2016, Michael O'Keeffe was granted 3,000,000 options to acquire Shares under Champion's incentive stock option plan (the "Stock Options").
Immediately before the Private Placement, Mr. O'Keeffe had beneficial ownership of, or control or direction over, 11,401,930 Shares (representing 7,901,930 Shares held by Prospect and 3,500,000 Shares held by WMO Welcome Pty Ltd. ("WMO")) and 2,000,000 Stock Options.
After the completion of the Private Placement, Mr. O'Keeffe had beneficial ownership of, or control or direction over, 33,276,930 Shares (representing 29,776,930 Shares held by Prospect and 3,500,000 Shares held by WMO), 7,500,000 Compensation Options and 5,000,000 Stock Options, representing approximately 8.62% of Champion's issued and outstanding Shares on a non-diluted basis, and 11.49% of Champion's issued and outstanding Shares, assuming exercise and conversion of all the Compensation Options and Options held by Mr. O'Keeffe and Prospect only.
The Shares were acquired at a price of $0.16 per Share, and the Compensation Options were granted to Prospect for no consideration in connection with Prospect's commitment to subscribe for a number of Shares pursuant to the Private Placement.
Mr. O'Keeffe acquired the Shares for investment purposes. Mr. O'Keeffe and his affiliates may, depending on market and other conditions and subject to applicable securities regulation, change their beneficial ownership of (or control or direction over) the Shares, whether in the open market, by privately negotiated agreements, or otherwise.
An early warning report in respect of the above noted transaction will be filed on SEDAR.
Contact Information:
For further information, please contact:
Jorge Estepa
Corporate Secretary (Canada)
Champion Iron Limited
416.866.2200