Australia-based mineral exploration company Mamba Minerals has completed its merger with Canadian iron ore developer Champion Iron Mines, along with its wholly-owned subsidiary Champion Exchange (Canco).
The result of the business combination will be a new company known as Champion Iron.
Under the transaction, Mamba and Canco have acquired the outstanding common shares of Champion under a court-approved plan of arrangement, which were just under 138 million shares.
As part of the merger, Mamba Minerals has re-branded as Champion Iron or New Champion, which will have access to both the Canadian and Australian capital markets.
New Champion CEO Thomas Larsen said: "The closing today of our business combination with Mamba represents the beginning of an exciting new chapter in the development of the Consolidated Fire Lake North project."
The project is located in Québec and a pre-feasibility study was completed for it in February 2013, for production of 9.3 million tonnes with a NPV of C$3.3 ($2.9bn) on with C$44 ($39) per tonne of operating costs.
Fire Lake is located north of ArcelorMittal‘s operating Fire Lake Mine and 60km south of Cliff Natural Resources’ Bloom Lake Mine within the Fermont Iron Ore District.
The company also holds an option to earn 100% of the Snelgrove Lake project, an iron ore project located in the Labrador Trough.