Champion Iron (ASX:CIA) has raised US$100 million ($143.04 million) through a private placement to Caisse de dépôt to fund the acquisition of Rana Gruber.
The company will issue 26.79 million subscription receipts at US$3.73 each to fund in part the purchase price payable for acquiring the issued and outstanding shares of Rana Gruber.
Following the issuance of subscription receipts Caisse de dépôt will hold 8.5% of Champion on a non-diluted basis.
The funds raised will be held in escrow until the minimum acceptance condition of this offering has been met.
As reported by Mining.com.au, Champion Iron entered the transaction agreement to acquire Norwegian iron ore producer Rana Gruber.
The company will acquire remaining shares of Rana Gruber at NOK79 per share for a total of NOK2.93 billion.
Champion Iron owns and operates the Bloom Lake Mining Complex in the south end of the Labrador Trough in Québec, through its wholly owned subsidiary Québec Iron Ore.
Write to Maddison Elliott at Mining.com.au
Images: Champion Iron
