Champion Iron (ASX:CIA) has entered a definitive framework agreement with Nippon Steel Corporation and Sojitz Corporation to sell a combined 49 per cent stake in the Kami Iron Ore Mine Partnership for C$245 million. Nippon Steel and Sojitz will make an initial cash contribution of C$68.6 million to secure their stake. Champion Iron will retain a 51 per cent stake in the partnership, with Nippon Steel holding 30 per cent and Sojitz 19 per cent.
Nippon Steel and Sojitz are expected to contribute further funds on a pro-rata basis to cover expenses necessary to advance the Kami project. These expenses will go towards permitting, community engagement, and completing a Definitive Feasibility Study (DFS), expected by the end of 2026. As part of the second stage of the transactions, Nippon Steel and Sojitz will make subsequent contributions in the aggregate amount of C$176.4 million to finalise securing their stakes in the partnership.
According to Champion CEO David Cataford, the agreement marks a significant milestone for the Kami project, establishing a clear structure for its evaluation and progression. Cataford stated that the partnership, supported by anticipated proceeds and the partners’ contributions, will enable the company to advance the project without affecting its financial liquidity in the foreseeable future. Champion Iron plans to engage with local stakeholders and pursue discussions with governments to explore potential support for the project.
Champion Iron is a dual-listed iron ore-focused mining company that operates and explores in Canada. Champion Iron has a market capitalisation of $2.57 billion. The company will also evaluate opportunities to improve Kami’s economics and will shift its focus to identifying opportunities to enhance the project’s economics while remaining committed to its disciplined capital allocation strategy.
