Resource Capital Fund VI L.P. Acquires Shares of Champion Iron Limited

DENVER, April 13, 2016 /CNW/ - Resource Capital Fund VI L.P. ("RCF VI") reports that it has purchased 40,331,250 ordinary shares (the "Shares") in the capital of Champion Iron Limited ("Champion") in connection with an offering, on a private placement basis, of an aggregate of 187,500,000 ordinary shares of Champion for aggregate gross proceeds of C$30 million, completed as of April 11, 2016 (the "Offering").

The Shares were acquired at a price of $0.16 per Share, for gross proceeds paid to Champion by RCF VI of C$6.453 million.

Following the completion of the Offering, RCF VI beneficially owns, directly or indirectly, 40,331,250 Champion ordinary shares, representing approximately 10.45% of the current issued and outstanding Champion ordinary shares and 9.50% of the issued and outstanding Champion ordinary shares on a fully diluted basis. RCF VI did not own or control any Champion ordinary shares prior to the Offering.

RCF VI acquired the Shares for investment purposes. RCF VI may from time to time acquire additional securities, dispose of some or all of the existing or additional securities or may continue to hold the securities of Champion.

A portion of the proceeds from the Offering were used to fund the purchase price of Champion's acquisition, through its subsidiary, Québec Iron Ore Inc., of the Bloom Lake Mine and related rail assets and the Quinto Mining Corporation mineral claims in Québec from Cliffs Québec Iron Mining ULC, Bloom Lake Mine Iron Ore Limited Partnership, Bloom Lake Railway Company Limited and Quinto Mining Corporation. The balance of the proceeds will be used to provide Champion with working capital and to assist in meeting care and upgrade costs in respect of the Bloom Lake Mine.

In connection with the Offering, RCF VI has been granted the following rights as part of the placement for as long as it holds more than 10% of the issued and outstanding ordinary shares of Champion:

a)     

the right to nominate a director for election by the shareholders of Champion;



b)     

subject to Australian Securities Exchange ("ASX") approval, a pre-emptive right to participate in any subsequent equity financing; and



c)     

subject to ASX approval, a consent right for any subsequent equity financing, such consent not to be unreasonably delayed or withheld.

For further information and to obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see Champion's profile on the SEDAR website www.sedar.com.

SOURCE Resource Capital Fund VI L.P.

For further information: and to obtain a copy of the early warning report, please contact: Resource Capital Fund VI L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell


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