Champion Minerals grants Century 51% of Attikamagen

2012-02-07 16:52 ET - News Release

Mr. Thomas Larsen reports

CHAMPION MINERALS CONVEYS A 51% INTEREST IN THE ATTIKAMAGEN IRON PROPERTY TO LABEC CENTURY IRON ORE INC.

Pursuant to the Attikamagen option and joint venture agreement entered into with Labec Century Iron Ore Inc., a subsidiary of Century Iron Mines Corp., Champion Minerals Inc. has signed and delivered to Labec Century transfers conveying a 51-per-cent interest in the Attikamagen iron property to Labec Century.

After review, Champion has confirmed that Labec Century has fulfilled its obligation to finance $7.5-million in exploration and development work expenditures on the Attikamagen iron property required to earn the initial interest. Labec Century has the option to increase its interest to 56 per cent by financing a further $2.5-million in exploration and development work on the Attikamagen iron property on or before May 12, 2013, and to further increase its interest to 60 per cent by financing an additional $3-million in exploration and development work on the Attikamagen iron property on or before May 12, 2014. Subject to Labec Century completing its applicable options, Labec Century and Champion will form a joint venture reflective of their proportionate ownership interests in the Attikamagen iron property.

"Champion is very pleased that Century Iron Mines Corp., through its subsidiary, Labec Century, is progressing exploration of the Attikamagen iron property and that it has attracted WISCO International Resources Development & Investment Ltd. as a very strong minority partner in the Attikamagen iron property," said Thomas G. Larsen, president and chief executive officer of Champion. "To Champion, WISCO's recent agreement to fund Labec Century with $40-million for a 40-per-cent interest in Labec Century speaks loudly about the potential in the Attikamagen iron property."