VANCOUVER, British Columbia, April 28, 2020 (GLOBE NEWSWIRE) – Alderon Iron Ore Corp. (TSX: IRON) (“Alderon” or the “Company”) announces an update to the $ 14 million loan facility plus accrued interest and fees (the “Credit facility“) Due to Sprott Resource Lending (“Sprott“). As previously announced, the company failed to repay the loan facility by the due date and Sprott was able to realize its collateral, causing the company to lose its stake in the Kami project. Over a period of more than 18 months, the company followed up on all available alternatives, including strategic transactions as well as equity and debt financing, supervised by an independent board committee and advised by external legal and financial advisers. Upon completion of their investment by Tunghsu Group Co., Ltd. Due to COVID-19, the company had limited alternatives. The company continued to examine all available alternatives, including a corporate transaction or a further extension with Sprott as part of a care and maintenance scenario. Unfortunately, despite these efforts, the company has not been able to negotiate an alternative. Sprott has stated that it intends to enforce its collateral and seize the Kami project and all assets related to it.
Mr. David Porter, Mr. Adrian Loader, Mr. Rolland Morier and Mr. Tayfun Eldem have retired from the Company’s Board of Directors. Mr. Eldem has resigned as President and Chief Executive Officer of the company, Ms. Kate Lynn-Genzel has resigned as Chief Financial Officer of the Company, and the remaining company executives have also submitted their resignation.
ALDERON EISENERZ CORP.