07/18/2017 04:33 EDT | Updated 07/18/2017 04:40 EDT

Champion Iron Ore agrees to pay port certain fees in advance for Bloom Lake

MONTREAL — Champion Iron Ltd. (TSX:CIA) has conditionally agreed to pay an unspecified sum to the Port of Sept-Iles in eastern Quebec to settle their dispute surrounding a 2012 deal.

The company, which is the parent of Champion Iron Mines Ltd. and Quebec Iron Ore Inc., plans to use the port for shipping iron ore from the Bloom Lake Mine near Fermont, Que.

It says the settlement is conditional on closing a previously announced US$180-million financing deal with the Caisse de depot pension fund manager and Sprott Resource Lending.

The mining company says the payments under the settlement will be advances on future shipping, wharfage and equipment fees to be paid by Quebec Iron Ore under the 2012 agreement.

Champion's Quebec Iron Ore Inc. and agencies of the provincial government bought the Bloom Lake mine and a regional railway last year from an affiliate of Cliffs Natural Resources that was put into creditor protection after ore prices tumbled.