You can see the condition of the screws in the close-up photos, also dent on side of fuel tank. It is missing the original trim pin and part of the tiller grip rubber end. Gas cap is original and mint. Decal on top of tank with starting instructions is faded and very hard to read.
I decided to list it as I saw another Champion Kingfisher advertised on e-bay too. It of course is a single cylinder producing about 3 h. If you collect vintage outboard motors, the Champion is one of the finest. Looks like the tank was off once and it is missing only one 1/4 inch lock washer there. Prop is perfect and there is some 20 degrees turn of the crankshaft before the prop moves, perhaps this is normal play for the shaft and lower unit.
This is a water cooled motor but I never tested to see if it is pumping water. The item "Champion outboard motor 1940 1941 Kingfisher 3hp virgin runs" is in sale since Thursday, November 19, 2015. This item is in the category "eBay Motors\Parts & Accessories\Boat Parts\Outboard Engines & Components\Complete Outboard Engines". The seller is "geedo2" and is located in Duluth, Minnesota. This item can be shipped to North, South, or Latin America, to all countries in Europe, to all countries in continental Asia, to Australia.