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Alderon Iron Ore Corp announced that it has signed a definitivesubscription agreement with Liberty Metals & Mining Holdings, LLC asubsidiary of Liberty Mutual Group. In connection with the CAD 194Msubscription agreement recently signed between Alderon and HebeiIron & Steel Group Co Ltd. LMM indicated to Alderon that it intended to exercise its preemptive right to maintain its relative proportionate interest inthe Company. LMM has now re confirmed this intention with theexecution of the Subscription Agreement. Under the terms of thisSubscription Agreement, LMM will acquire approximately 3,805,576common shares at the subscription price of CAD 3.42 per share, forgross proceeds to the Company of CAD 13,015,070. The subscription by Liberty will allow it to maintain itsproportionate interest in the Company after the closing of thepreviously announced strategic partnership with Hebei, China'slargest steel producer. Hebei will make a strategic investment intoboth Alderon and its Kami iron ore project in an aggregate amountof CAD 194 million, in exchange for 19.9% of the outstanding commonshares of Alderon and a 25% interest in a newly formed limitedpartnership that will be established to own the Kami Project. Theclosing of the transactions with Hebei remain subject to approvalsfrom the government of the People's Republic of China and are alsosubject to the approvals of the Toronto Stock Exchange and NYSEMKT. The closing of the private placement with Liberty contemplated bythe Subscription Agreement is conditional on the closing of theHebei Private Placement. In addition, the Subscription Agreement issubject to the approvals of the Toronto Stock Exchange and the NYSEMKT. In addition to the private placement with Liberty and the strategicpartnership with Hebei, during the preceding 12 months the Alderonteam has compiled an impressive list of accomplishments. Highlightsinclude: 1. Completing an initial mineral resource estimate on North Rose,Rose Central and Mills Lake of 490 million tonnes at 30.0% iron inthe Indicated category and an additional 598 million tonnes at30.3% iron in the Inferred category. Mineral resources that are notmineral reserves do not have demonstrated economic viability. 2. Completing a Preliminary Economic Assessment of the Kami Projectwhich indicates a positive pre-tax NPV of USD 3.07 billion(discounted at 8%); pre-tax IRR of 40.2%; payback period of 2.7years and an annual production of 8 million tonnes at 65.5% iron.The PEA is preliminary in nature and it includes Inferred mineralresources that are considered too speculative geologically to havethe economic considerations applied to them that would enable themto be categorized as mineral reserves. There is no certainty thatthe conclusions reached in the PEA will be realized. 3. Initiating the Federal and Provincial Environmental Assessmentprocesses and the Government of Canada and the ProvincialGovernment of Newfoundland and Labrador have issued draftenvironmental impact statement guidelines for public review. 4. Adding former Newfoundland and Labrador Premier Danny Williamsto its Board of Directors. 5. Adding several senior former Iron Ore Company of Canada andConsolidated Thompson executives to the management team, mostnotable appointing Tayfun Eldem as President and CEO. 6. Completing a strategic investment with Liberty Metals & MiningHoldings, LLC of approximately CAD 40 million. 7. Graduating to the Toronto Stock Exchange under the symbol ADV. 8. Commencing trading on the NYSE MKT exchange under the symbolAXX. 9. Successfully completing its final exploration drill programprior to the preparation of a Feasibility Study on the Kami Projectwhich consisted of 32 holes, totaling 12,300 meters. Source - Alderon. I am an expert from verticalagitator.com, while we provides the quality product, such as Pipe Compensator , China Top Entry Agitator, Vertical Agitator,and more.
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