TORONTO (miningweekly.com) – The proposed merger of Labrador Trough iron-ore project developers Champion Iron Mines and Australia-based Mamba Minerals this week moved another step closer to closing after the TSX had granted Mamba conditional approval to list its common shares.

These TSX-listed shares would be issued to Champion shareholders in exchange for their Champion common shares under the terms of the plan of arrangement between Champion, Mamba and 2401397 Ontario Inc (subsequently renamed Champion Exchange Limited).

Having its shares listed on the TSX was one of several conditions for completing the pending transaction.

The business combination valued Champion at about C$60-million.

When the transaction closes as expected on March 31, shortly after receiving final court approval, Mamba would change its name to Champion Iron Limited and its ordinary shares (whether currently issued or issued as part of the arrangement) would trade on the TSX and the ASX, providing the resulting iron-ore company with access to both the Canadian and Australian capital markets and allowing the shareholders of the combined company to trade Mamba ordinary shares on either stock exchange.

Mamba shareholders had also on Thursday approved at an extraordinary general meeting of shareholders all resolutions relating to the arrangement. Champion security holders would vote on the arrangement next Thursday.

At the end of last month, Mamba had successfully completed an A$10-million private placement and a share consolidation – both critical conditions for completing the transaction.

Mamba is targeting hematite mineralisation at its Snelgrove Lake project, in the Labrador Trough. Several majors, including Rio Tinto, ArcelorMittal, Tata Steel, Cliffs Natural Resources, Wuhan, Posco and Hebei, are also active in the region, which is known for its low impurity, high-grade product.

The Snelgrove project is located approximately 55 km south-east of Schefferville and 200 km north of Labrador City, towns with significant mining services. The project is approximately 65 km from common carrier railway, with available capacity to the Port of Sept-Iles.

Champion is developing its flagship Consolidated Fire Lake North project, located in the Fermont iron-ore district.