Champion Iron's binding agreement to form a partnership with Nippon Steel and Sojitz for the development and joint ownership of its Kami iron ore project in Quebec is "incrementally positive" for the mining firm, Euroz Hartleys said in a Dec. 19 note.

Under the agreement, Nippon and Sojitz will invest CA$245 million for a combined 49% stake and Champion Iron will retain a 51% stake in the project, sharing development costs proportionally.

Euroz Hartleys said its previous valuation of the company did not include the Kami project due to its funding requirements but expects to add the project to the company's valuation following a final investment decision.

The financial services firm maintained the company's buy rating.