Bank of China contributes to $50 million syndicated revolving credit facility to Quebec Iron Core Inc. to finance the Bloom Lake Phase II expansion project (Linked to Record ID#93828 and #93840)

Project narrative

On December 23, 2020, a syndicate of banks, including the Bank of China (BOC), entered into a $50 million syndicated revolving credit facility to Quebec Iron Ore Inc. to finance the Bloom Lake Phase II expansion project. The loan has a maturity date of three (3) years and will bear an interest of LIBOR plus 4% before the completion of Bloom Lake Phase II construction, after which the rate will revert to leverage ratios between LIBOR plus 2.85% if the EBITDA ratio is lower or equal to 1x, and to LIBOR plus 3.75% if the EBITDA ratio is greater than 2.5x. Fees, representations, warranties, covenants, and conditions are described as "standard and customary". The loan was committed on November 12, 2020. This loan, which along with a related revolving credit facility lent by the same syndicate (Record ID#93828) doubled the existing credit facilities available to Quebec Iron Ore Inc., was expected to fully fund the construction of the Bloom Lake Phase II expansion project. The expansion project aimed to double the nameplate capacity of the Bloom Lake Mine to 15 Mtpa of high-grade iron ore concentrate. The project consists of a railway that aims to transport of the high-quality iron concentrate to a loading port in Sept-Iles, Quebec. It is expected to be completed by the end of 2022. Quebec Iron Ore Inc. is a fully owned subsidiary of Champion Iron Limited, which reported that $180 million had been drawn from the two facilities on May 24, 2022. On May 24, 2022, the two facilities were refinanced into a $400 million general purpose revolving credit facility, in which the Bank of China's share of the loan was given to its Canadian subsidiary based in Toronto (Record ID#93840).