Champion Minerals Inc. (CHM.TO, CPMNF.PK) announced the completion of the acquisition by Champion of Fancamp's 17.5% joint venture interest in the Fermont Properties in the Fermont iron ore district in north-eastern Quebec, which was not already owned by Champion effective May 17, 2012, following release from escrow today.
The acquisition was paid for by Champion issuing 14 million common shares and 7 million non-transferable warrants to Fancamp. Each warrant entitles Fancamp to purchase one common share of Champion at a price of $3.00 per share at any time between two and a half and three years after the date of issue, subject to acceleration in certain circumstances. With the acquisition of those shares and together with shares currently held, Fancamp holds 12.59% of the shares of Champion on a non-diluted basis.
As a result of the acquisition, Champion said it now owns a 100% interest in the Fermont Properties and Champion and Fancamp terminated their joint venture relating to the Fermont Properties. However, Champion continues to retain its right of refusal over Fancamp's interest in the Lamellee Property and Fancamp continues to retain its 50% interest in the 3% royalty on the iron production from the Fermont Properties.
In connection with the acquisition, Fancamp has obtained from Champion a permanent and irrevocable waiver of Champion's right to buy-down one-third of Fancamp's 50% interest in the 3% royalty, which represents a 0.5% royalty interest. For this waiver, Fancamp paid $2.0 million to Champion. As a result, Champion retains its right to buy-down the royalty, from a third party, from 3% to 2.5%.
In connection with the waiver, Champion noted that it invested $2 million in Fancamp by acquiring 8 million common shares of Fancamp from treasury at a price of $0.25 per share.
Champion said it also invested $3 million in Fancamp by acquiring 10 million units of Fancamp at a price of $0.30 per unit.
Champion and Fancamp will each be entitled to nominate two persons to the Board of Directors of the other so long as Champion holds at least 12 million shares of Fancamp and Fancamp holds at least 10 million shares of Champion.
Effective today, Paul Ankcorn, one of the nominees of Champion, has been appointed to the Board of Directors of Fancamp, and Jean Lafleur, one of the nominees of Fancamp, has been appointed to the Board of Directors of Champion. With that appointment, Ankcorn has resigned from the Board of Directors of Champion but joins its Advisory Board. The remaining nominees of Champion and Fancamp will be nominated for election to the Board of Directors of the other at their respective next annual meetings of shareholders.
Champion has acquired the Fancamp common shares and warrants in these transactions for investment and has no present intention of acquiring additional securities of Fancamp. Champion said it may acquire more or sell some or all of its securities of Fancamp, subject to the limitations on transfer and exercise.
Following these transactions, Champion holds 18 million common shares of Fancamp, representing approximately 16.46% of the issued and outstanding common shares of Fancamp as well as warrants exercisable into 10 million common shares of Fancamp, which, if exercised, would represent approximately 8.38% of the issued and outstanding common shares of Fancamp.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.