Alderon Iron Ore Provides Update on Project Financing

Alderon Iron Ore Corp. (TSX:ADV,NYSE MKT:AXX) and BNP Paribas have agreed to terminate the engagement of BNP Paribas as lead arranger of the senior debt financing facility for the construction of the Kami Project. Alderon has appointed Endeavour Financial Limited in order to act as its financial advisor in terms of the project financing process. It intends to form a club syndicate of international banks to provide the senior debt financing facility.

As quoted in the press release:

The process with BNP identified a number of domestic and international banks, including Chinese banks, that provided letters confirming their interest in participating in the senior debt
financing facility. The termination of BNP’s engagement will allow the Company to move forward informing this club syndicate of banks, with the assistance of Endeavour Financial.

Alderon Executive chairman, Mark J. Morabito, said:

We have made significant progress working with BNP Paribas on the debt financing process and in our view the due diligence reports that have been completed demonstrate the quality of the Kami Project. We have decided that the best path forward for the debt financing process would be to focus on a club syndicate transaction. We have informed BNP of this decision and they have agreed to terminate the BNP engagement. The team from Endeavour Financial has an excellent track record in assisting companies in completing debt financings and with the significant amount of work that has already been accomplished, I am confident that we will deliver on our financing plan.

Click here to read the Alderon Iron Ore Corp. (TSX:ADV,NYSE,MKT:AXX) press release