The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Champion Minerals Enters Into an Exclusive Memorandum of Understanding With the Takuaikan Uashat Mak Mani-Utenam Innus First Nation on the Potential Development of a New Multi-User Railway

Monday, April 02, 2012

Champion Minerals Enters Into an Exclusive Memorandum of Understanding With the Takuaikan Uashat Mak Mani-Utenam Innus First Nation on the Potential Development of a New Multi-User Railway07:30 EDT Monday, April 02, 2012TORONTO, ONTARIO--(Marketwire - April 2, 2012) -CHAMPION MINERALS INC. (TSX:CHM)(FRANKFURT:P02) ("Champion", or the "Company") is proud to announce that it entered into a memorandum of understanding with the Takuaikan Uashat Mak Mani-Utenam Innu First Nation ("ITUM") of Uashat, Québec, located near the Port of Sept-Îles."This memorandum of understanding confirms that ITUM has agreed to enter into exclusive discussions with Champion in connection with the potential development of an entirely new multi-user railway and the potential creation of a partnership, the equity of which would be opened to other users, in order to design, build and manage this new railway. The objective of this new railway would be to service the iron ore industry directly linking the Fire Lake North region to the planned multi-user Port Facility at Pointe Noire, in Sept-Îles, Québec", says Richard Quesnel, Senior Technical Advisor and Head of Champion's Advisory Board.At this stage, the intent of ITUM and Champion is that the interests and long term vision of ITUM will be integrated in the project planning as the parties desire to create a sustainable development project that will enable the economic development of the region and support mutual environmental and social responsibility objectives. "This railway project is the one that offers the best prospects for the development of my community. Negotiated with respect, this project offers sustainable economic benefits and constitutes an important asset that will create appealing jobs on our territory for our next generations", said Chief Georges-Ernest Grégoire of ITUM."Champion is also in discussions with other potential iron ore shippers in connection with the potential expansion of this new railway further north to service regions where other significant deposits are located", stated M. Quesnel. Tom Larsen, Champion's President and CEO commented, "We are extremely pleased to announce this agreement with ITUM to develop a railway that will benefit their community as well as enable the development of iron ore projects in the Labrador Trough. We look forward to working together with ITUM."The participation of ITUM in this railway project is conditional upon, among other things, the negotiation of definitive agreements between Champion and ITUM.The Fermont Iron HoldingsChampion's Fermont Holdings comprise seventeen properties, three of which - Fire Lake North, Bellechasse and Harvey-Tuttle and Moire Lake - host combined estimates of current Measured and Indicated Iron Mineral Resources totalling 564 Million Tonnes and Inferred Iron Mineral Resources totalling 2.2 Billion Tonnes. About Champion Minerals Inc. Champion Minerals is an iron ore exploration and development company with offices in Montreal and Toronto, and is focused on developing its significant iron ore resources in the provinces of Québec and Newfoundland and Labrador. The Company's projects include: the Fermont Holdings in Québec, jointly held by Champion (82.5% interest) and Fancamp Exploration Ltd. (17.5% interest); and the Attikamagen Iron Property in Québec and Labrador. Champion's Fermont Holdings, including the flagship Fire Lake North Project, are located in Canada's major iron ore producing district, in close proximity to three producing mines. Champion's team and advisory board includes mining and exploration professionals with substantial iron ore expertise to effectively advance the Fire Lake North Project into production.Please visit Champion's website at www.championminerals.com. Statements made in this news release that are "forward-looking statements" are not historical facts. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those stated herein.FOR FURTHER INFORMATION PLEASE CONTACT: Thomas G. LarsenChampion Minerals Inc. - Toronto OfficePresident and CEO(416) 866-2200ORJeff HusseyChampion Minerals Inc. - Montreal OfficeExecutive VP, Development(514) 316-4858www.championminerals.com