MONTRÉAL, Québec, Feb. 27, 2019 (GLOBE NEWSWIRE) -- Alderon Iron Ore Corp. (TSX: IRON) ("Alderon" or the “Company”) is pleased to announce that it and The Kami Mine Limited Partnership (“The Kami LP”) have signed a Memorandum of Understanding (“MOU”) with Envest Corp. (“Envest”) ‒ an independent power producer specializing in the financing, development, ownership and operation of mid-market energy infrastructure projects in North America. The MOU provides that The Kami LP and Envest will enter into transactions whereby Envest will acquire and manage the equipment that The Kami LP intends to procure from Schneider Electric for use in the Kami Iron Ore Project (“Kami Project”), located in western Labrador (see news release dated January 9, 2019). This transaction is expected to provide up to US$35 million for power infrastructure. In addition, Envest and The Kami LP will explore the potential for additional financial solutions from Envest for other equipment that will be utilized in the Kami Project.
“We are thrilled to partner with Envest due to their industry expertise and comprehensive energy solutions for large industrial projects,” said Tayfun Eldem, Alderon’s President and CEO. “The partnership will help us establish one of the elements of a broader equipment financing solution for the Kami Project,” added Mr. Eldem.
“We are pleased to be a part of the advanced-stage Kami Project. Our leadership team has decades of experience in the fields of energy development, finance and engineering, and looks forward to collaborating with The Kami LP to structure financing solutions for their energy, automation and process control requirements,” said Jason Moretto, Envest’s President and CEO.
The Kami LP and Envest need to enter into definitive documentation in order for the transactions set out in the MOU to proceed. There is no certainty that the transactions contemplated in the MOU will be concluded.
As the demand for premium iron ore strengthens, and with numerous agreements already in place including, release from federal and provincial environmental assessments and receipt of mining and surface leases, conclusion of long-term offtake agreements for 100 per cent of its premium quality concentrates, securing of power and port access contracts, and completion of more than 50 per cent of detailed engineering, the premium-quality Kami Project remains a rare development opportunity in the iron ore industry. Alderon is now focusing on the final de-risking step of completing financing for the Kami Project.
About Envest Corp.
Envest Corp. is an independent power producer delivering private utility energy to industrial, commercial & government customers in North America. Envest finances, builds, owns and operates turnkey distributed energy systems tailored to meet customers’ objectives and power demands in mission critical environments.
For more information on Envest, please visit https://envestcorp.com.
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 through The Kami Mine Limited Partnership, is located within Canada’s premier iron ore district, the Labrador Trough, and is surrounded by three producing iron ore mines. The Kami product will be shipped through a newly commissioned multi-user, deep-water berth near the Port of Sept-Îles in Québec.
For more information on Alderon, please visit our website at www.alderonironore.com.
ALDERON IRON ORE CORP.
On behalf of the Board
"Tayfun Eldem"
President & CEO, Director
| 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:
Mishka Gounden
1-604-681-8030 ext 289
info@alderonironore.com
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) the premium product expected to be produced from the Kami Project; (ii) the next steps in the development of the Kami Project; (iii) the completion of project financing, including access to financing sources introduced by Envest Corp; (iv) the entry into a definitive agreement with Envest Corp. and (v) the terms and benefits of the potential transaction with Envest Corp.
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 and Mineral Reserves, 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 and Mineral Reserves, 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 and Mineral Reserves, 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 Indigenous governments and organizations, 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.