Champion Iron has now concluded that it may not realise some of the expected benefits from the proposed move due to the present situation across the world
Champion Iron scraps re-domiciliation to Canada due to coronavirus. (Credit: aymane jdidi from Pixabay)
Champion Iron said that it will not move ahead with its proposed re-domiciliation from Australia to Canada owing to the prevailing market volatility and global uncertainty caused by the coronavirus outbreak.
The iron ore mining company was to redomicile by means of a scheme of arrangement. However, it has now concluded that it may not realise some of the expected benefits from the proposed move due to the present situation.
The company said that its board of directors found that the re-domiciliation is not in the best interests of the shareholders at this time. As a result, Champion Iron has decided to scrap the scheme of arrangement.
The iron ore miner will also withdraw the application that has been seeking orders from the Federal Court of Australia for approval of the scheme of arrangement.
However, the company’s board could consider implementing a re-domiciliation to Canada at a later point in time, which will be based on market conditions.
The company said that its decision to scrap the re-domicile move will not have any effect on its assets, operations, or workforce, which will all predominantly remain based in Quebec, Canada.
Champion Iron to continue to be listed on both TSX and ASX
Furthermore, the company’s shares will continue to be listed in Canada on the Toronto Stock Exchange (TSX) and in Australia on the Australian Securities Exchange (ASX).
Champion Iron announced its plans to re-domicile to Canada in January 2020 in order to align its domicile with its operations.
Some of the company’s projects include Bloom Lake, Consolidated Fire Lake North, Moire Lake, Harvey Tuttle among others, which are mainly located in Quebec.
In August 2019, Champion Iron took full ownership in Quebec Iron Ore, which owns the Bloom Lake mine, by acquiring the 36.8% stake held by Ressources Québec.