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Alderon Iron Ore Corp. (TSX:ADV,NYSE:AXX) announced it has changed its agreement with Hebei Iron & Steel Group Co., Ltd. to lower its investment from $194 million to $182.2 million.
Alderon Iron Ore Corp. (TSX:ADV,NYSE:AXX) announced it has changed its agreement with Hebei Iron & Steel Group Co., Ltd. to lower its investment from $194 million to $182.2 million.
As quoted in the press release:
Hebei’s initial investment in Alderon and the Kami Project will now be an aggregate amount of C$182.2 million in exchange for 19.9% of the outstanding common shares of Alderon (the “Private Placement”) and a 25% interest in a newly formed limited partnership that will be established to own the Kami Project. While the investment proceeds for 19.9% of the outstanding common shares of Alderon have been reduced from $88.3 million to $62.2 million, the investment proceeds for the 25% interest in the Kami Project have been increased from $105.7 million to $120 million. There are no other amendments to the terms of the transaction. In addition, Hebei has informed Alderon that it fully expects to have all Chinese regulatory approvals for the transaction on or before August 20, 2012.
Click here to read the Alderon Iron Ore Corp. (TSX:ADV) press release.