Company sells to Liberty Metals; funds for Kami iron ore project
By Marisa Wong
Madison, Wis., Jan. 12 - Alderon Iron Ore Corp. announced it will raise C$40 million through a private placement of common stock. Liberty Metals & Mining Holdings, LLC, a subsidiary of Liberty Mutual Group, is the subscriber.
Alderon will sell 14,981,273 common shares at a price of C$2.67 per share. The purchase price is based on the volume-weighted average price of Alderon stock for the 20 trading days ended Jan. 11.
In connection with the subscription, Liberty Metals will be entitled to nominate one person to Alderon's board of directors and will have a preemptive right to participate in any of Alderon's future equity financings.
If Liberty Mutual decides to sell any of the shares it purchased in the placement, Alderon has the right to identify potential purchasers of those shares.
Alderon plans to use proceeds primarily to fund the drilling program and feasibility study for its main asset, the Kami iron ore project, to secure long-lead equipment and for general and administrative expenses.
Alderon is an iron ore development company based in Vancouver, B.C.
| Issuer: | Alderon Iron Ore Corp.
|
| Issue: | Common stock
|
| Amount: | C$40 million
|
| Shares: | 14,981,273
|
| Price: | C$2.67
|
| Warrants: | No
|
| Pricing date: | Jan. 12
|
| Stock symbol: | TSX Venture: ADV
|
| Stock price: | C$3.23 at close Jan. 11
|
| Market capitalization: | C$258.73 million
|
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