Champion Iron cancels port deal, stock down 11%

Stockhouse Editorial
0 Comments| July 2, 2013

(The Canadian Press) MONTREAL _ Champion Iron Mines Ltd. (TSX: T.CHM, Stock Forum) is saving $20 million by terminating a 2012 agreement to support new multi-user port facilities being built in Sept-Iles, Que.

The junior miner says in a press release it served notice of its intentions on June 28, a few days before its remaining payment was due.

The move follows Canadian National Railway's (TSX: T.CNR, Stock Forum) decision to suspend a feasibility study on a new railway line in the Labrador Trough because of difficult market conditions.

Champion was down 11% to 20 cents Tuesday, leaving a market cap of $24 million, based on 119.9 million shares outstanding. The 52-week range is $1.19 and 19 cents.

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