Alderon Iron Ore has announced that it and The Kami Mine Limited Partnership have entered into an agreement with Sprott Resource Lending, a global leader in resource asset investments, for a US$14 million loan facility.
Alderon Iron Ore (TSX:IRON) has announced that it and the Kami Mine limited partnership have entered into an agreement with Sprott Resource Lending, a global leader in resource asset investments, for a US$14 million loan facility.
According to the release, the loan facility will provide sufficient funds to repay the loan due to Liberty Metals & Mining Holdings and provide additional runway for Alderon to continue the re-boot for the Rose deposit of the Kamistiatusset iron ore property in western Labrador. This transaction with Sprott comes as Alderon advances an updated feasibility study scheduled for conclusion this fall. Upon completion, the updated feasibility study is expected to demonstrate that the Kami project is well-positioned to pursue project financing on account of the improved project economics highlighted in the updated preliminary economic assessment released November 7, 2017.
President and CEO of Alderon, Tayfun Eldem said:
“We recognize and greatly appreciate the confidence and support shown by Sprott in providing this financing. We are pleased to be working with the Sprott team as we continue the re-boot of the Kami project, which will ultimately benefit all of its stakeholders, including the many local and regional interests. The loan from Sprott will allow Alderon to reduce its overall debt position and provide an extended bridge to the completion of project financing.”