Bank of China (Canada) contributes to $400 million USD general purpose revolving credit facility to Quebec Iron Core Inc. for the payment of remaining expenditure relating to the Bloom Lake Phase II Expansion Project (Linked to Record ID#93828, #93837)

Project narrative

On May 24, 2022, the Bank of China (BOC), through its Canadian subsidiary Bank of China, Canada, contributed an estimated $40 million to a $400 million general purpose revolving credit facility to Quebec Iron Core Inc. for the payment of remaining expenditure relating to the Bloom Lake Phase II Expansion Project, as well as for paying mining and income taxes and dividends to shareholders. The loan was the result of refinancing two earlier loans, to which Bank of China(Bank of China, Canada's parent company) had also contributed to, equaling $400 million, captured in Record ID #s #93837 and #93828. The loan had a maturity date of four years with an interest rate based on leverage ratios ranging between the Secured Overnight Financing Rate (“SOFR”), plus a credit spread adjustment plus 2.00% if the net debt to EBITDA ratio is lower or equal to 0.50x to SOFR, plus a credit spread adjustment plus 3.00% if the net debt to EBITDA ratio is greater than 2.50x. The loan was available to Quebec Iron Core Inc. due to the unexpectedly early commissioning of the Bloom Lake Phase II Expansion Project, occurring on May 4, 2022. 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.