Mamba Minerals to acquire Canadian iron ore project through merger with Champion Iron Mines.

Mamba Minerals has entered into a definitive arrangement agreement to merge with Canadian iron ore developer Champion Iron Mines.

Champon owns the Fire Lake project in Quebec, for which a Pre Feasibility Study was completed in February 2013 for production of 9.3 million tonnes with a NPV of CAD 3.3 billion with operating costs of CAD 44 per tonne.

Fire Lake is located north of ArcelorMittal's operating Fire Lake Mine and 60 kilometers south of Cliff Natural Resources' Bloom Lake Mine within the Fermont Iron Ore District.

The four current producers in the FIOD account for Canada's total Iron ore production, which is estimated at 47 million tonnes of Iron ore concentrate per year and is expected to increase to 200 million tonne per annum over the next ten years, based on current expansion plans.

The merged company, which will be named Champion Iron Limited and remain listed on the ASX, will commence work immediately on upgrading the PFS to a Bankable Feasibility Study that will take 12 months to complete.

Steel Guru