Alderon Iron Ore Corp. (TSX:IRON) is pleased to announce that it and The Kami Mine Limited Partnership have closed a previously announced loan facility with Sprott Resource Lending, a global leader in resource asset investments. Alderon used the funds received from the settlement with Newfoundland and Labrador Hydro, together with a portion of the US$14 million Loan Facility to repay the Liberty Metals & Mining Holdings, LLC loan. The closing of the Sprott transaction comes as Alderon advances its updated Feasibility Study scheduled for conclusion this fall. Upon completion, the updated FS is expected to demonstrate that the Kami Project is well-positioned to pursue project financing on account of improved project economics initially highlighted in the updated Preliminary Economic Assessment released on November 7, 2017.
“With the closing of the Sprott Loan Facility and the repayment of the loan from Liberty, Alderon is well positioned to complete its updated Feasibility Study and re-launch its project financing efforts,” stated Tayfun Eldem, President and CEO of Alderon. “The replacement loan is an endorsement of the quality of the Kami Project and provides Alderon with the capital to execute the next steps in the development plan while allowing it to reduce its overall debt load.”
The terms of the Loan Facility are:
Prior to the Closing Date, Altius held 51,838,916 Common Shares (representing 39% of the Company’s current issued and outstanding Common Shares). After the Closing Date, Altius now holds 52,526,206 Common Shares (representing 37.98% of the Company’s current issued and outstanding Common Shares).
About Sprott
Sprott is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, the company is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The company also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver and its common shares are listed on the Toronto Stock Exchange under the symbol (TSX:SII).
Sprott Resource Lending is a globally recognized leader in natural resource financing and specializes in providing flexible debt solutions to mining companies. Since joining Sprott, the team has financed more than $1.0 billion in bespoke private debt investments.
About Alderon Iron Ore Corp.
Alderon is a leading iron ore development company in Canada. The Kami Project, owned 75% by Alderon and 25% by HBIS Group Co. Ltd. (formerly Hebei Iron & Steel Group Co. Ltd.) through The Kami Mine Limited Partnership, is located within Canada’s premier iron ore district, the Labrador Trough, and is surrounded by two producing iron ore mines. Its port handling facilities are located in Sept-Îles, the leading iron ore port in North America. HBIS is Alderon’s strategic partner in the development of the Kami Project and China’s second largest steel producer.
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