VANCOUVER, British Columbia, Dec. 19, 2017 (GLOBE NEWSWIRE) -- Alderon Iron Ore Corp. (TSX:IRON) ("Alderon" or the “Company”) announces that the Kami Mine Limited Partnership (“Kami LP”) has signed an Agreement (the “Port Agreement”) with regards to the Multi-User Dock Contract with the Sept-Îles Port Authority (the “Port”) pursuant to which Kami LP reserved annual iron ore loading capacity of 8 million metric tonnes at the Port’s multi-user dock and previously advanced funds totalling $20.46 million (the “Buy-In Payment”) towards construction of the dock (see July 16, 2012 news release). Kami LP is the owner of the Kami Project and is held 75% by Alderon and 25% by HBIS Group Co. Ltd. (formerly Hebei Iron & Steel Group Co. Ltd).
Pursuant to the terms of the Multi-User Dock Contract, once the multi-user dock is operational Kami LP was required to provide take-or-pay payments to the Port in the event that Kami LP had not commenced shipping operations. The Port Agreement provides that the funds previously advanced by Kami LP for the Buy-In Payment will satisfy the take-or-pay obligation and that Kami LP has no further funding requirements in respect to the take-or-pay obligation. Once the funds previously advanced for the Buy-In Payment are fully offset against the take-or-pay obligation, Kami LP is able to reduce its reserved capacity proportionately based on the remaining term of the Multi-User Dock Contract. Kami LP also retains the option to satisfy the take-or-pay payments by making a reduced cash payment and once Kami LP commences shipping operations, the provisions of the Multi-User Dock Contract will apply. In all other respects, Alderon retains its rights under the Multi-User Dock Contract.
“I am pleased that the Kami LP and the Port have agreed to a reasonable solution regarding the take-or-pay obligations,” stated Mark Morabito, Chairman and CEO of Alderon. “Eliminating the potential for cash take-or-pay payments prior to production will be of great assistance as Alderon works to re-launch its construction financing process following the completion of the update to the re-scope of the Kami Project.”
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.) (“HBIS”) 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.
For more information on Alderon, please visit our website at www.alderonironore.com
ALDERON IRON ORE CORP.
On behalf of the Board
"Mark J Morabito"
Chairman & CEO
Alderon is part of the King & Bay group of companies. King & Bay is a merchant bank that specializes in identifying, funding, developing and supporting growth opportunities in the resource, aviation, and technology sectors.
For further information please call:
1-604-681-8030 ext 289
Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of the U.S. Private Securities Litigation Reform Act and Canadian securities laws concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this press release include, but are not limited to, statements with respect to (i) future shipping operations of the Kami LP; (ii) the financing process for the Kami project; and (ii) the development of the Kami Project
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, receipt of governmental and other approvals, the estimation of mineral resources, the realization of resource estimates, iron ore and other metal prices, the timing and amount of future development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Kami Project in the short and long-term, the progress of exploration and development activities, the ability of the Company to use the multi-user terminal facility at the Port of Sept-Îles, the receipt of necessary regulatory approvals, the estimation of insurance coverage, assumptions with respect to currency fluctuations and exchange rates, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Kami Project, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access rail transportation, sources of power and port facilities, risks relating to changes in iron ore prices and the worldwide demand for and supply of iron ore and related products, risks related to increased competition in the market for iron ore and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Kami Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, risks related to disputes with Aboriginal groups, risks related to insufficient capacity being available for the Company to access the multi-user terminal facility at the Port of Sept-Îles, environmental risks and the additional risks identified in the “Risk Factors” section of the Company’s Annual Information Form for the most recently completed financial year, or other reports and filings with applicable Canadian securities regulators. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this press release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.