Champion Iron completes US$100 Million Private Placement of Subscription Receipts with La Caisse
Press Release
MONTRÉAL, Feb. 4, 2026 – SYDNEY, February 5, 2026 – Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“Champion” or the “Company”) is pleased to announce that it has completed its previously announced private placement (the “Private Placement”) of 26,795,921 subscription receipts of the Company (the “Subscription Receipts”) to Caisse de dépôt et placement du Québec (“La Caisse”) at a price of US$3.7319 (C$5.1508) (the “Offer Price”) per Subscription Receipt for gross proceeds of US$100 million. Champion intends to use the proceeds from the Private Placement to fund in part the purchase price payable in respect of its previously announced conditional recommended voluntary cash tender offer (the “Offer”) to acquire all of the issued and outstanding shares of Rana Gruber ASA (“Rana Gruber”).
Assuming the issuance of the ordinary shares of the Company (each, an “Ordinary Share”) underlying the Subscription Receipts, the Private Placement represents ordinary share dilution to Champion of approximately 5.0% on a non-diluted basis. Together with its previously held interest in the Company and the Private Placement, La Caisse will hold approximately 8.5% of Champion’s ordinary shares on a non-diluted basis.
The gross proceeds of the Private Placement will be deposited in escrow, to be released to Champion following announcement that the minimum acceptance condition of the Offer has been met, provided the other conditions for completion of the Offer are satisfied and are expected to remain satisfied at the time of closing of the Offer. La Caisse will also receive upon conversion of the Subscription Receipts for Ordinary Shares, a customary capital commitment fee and an amount equal to any dividends declared by Champion and payable to holders of ordinary shares of record as of dates from and including the closing date of the Private Placement until, but excluding the date of the conversion of Subscription Receipts into Ordinary Shares. Should the conditions referred to above not have been satisfied, or the Offer lapse, terminate or be revoked or withdrawn, the gross proceeds of the Private Placement will be returned to La Caisse with earned interest accumulated from the gross proceeds in escrow.
No securities regulatory authority has either approved or disapproved the contents of this press release. The Subscription Receipts have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws. Accordingly, the Subscription Receipts may not be offered or sold within the United States unless registered under the 1933 Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the 1933 Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the Subscription Receipts in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Champion Iron Limited
Champion, through its wholly-owned subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex located on the south end of the Labrador Trough, approximately 13 kilometres north of Fermont, Québec. Bloom Lake is an open-pit operation with two concentration plants that primarily source energy from renewable hydroelectric power, having a combined nameplate capacity of 15M wet metric tonnes per year that produce lower contaminant high-grade 66.2% Fe iron ore concentrate with a proven ability to produce a 67.5% Fe direct reduction quality iron ore concentrate. Benefiting from one of the highest purity resources globally, Champion is investing to upgrade half of the Bloom Lake’s mine capacity to a direct reduction quality pellet feed iron ore with up to 69% Fe. Bloom Lake’s high-grade and lower contaminant iron ore products have attracted a premium to the P62 index. Champion ships iron ore concentrate from Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec, and has delivered its iron ore concentrate globally, including in China, Japan, the Middle East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion holds a 51% equity interest in Kami Iron Mine Partnership, an entity also owned by Nippon Steel Corporation and Sojitz Corporation, which owns the Kami Project. The Kami Project is located near available infrastructure, only 21 kilometres southeast of Bloom Lake. Champion also owns a portfolio of exploration and development projects in the Labrador Trough, including the Cluster II portfolio of properties, located within 60 kilometres south of Bloom Lake. The Company’s shares are listed on the Toronto Stock Exchange (TSX: CIA) and the Australian Securities Exchange (ASX: CIA).
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