News) - Alderon Iron Ore said Tuesday it was unable to come to terms with Sprott Resource Lending, which has now seized the Kami project and related assets.
Zigzag and RSI
Alderon negotiated a $14 million loan facility with Sprott, which Alderon was unable to repay the loan facility on the maturity date. The company attempted to find financial alternatives but was unable. One of its backers, Tunghsu Group Co., dropped out due to COVID-19 leaving the company "...with limited alternatives." In February, Tunghsu negotiated a letter of intent where Tungshu would take a 26% to 38% interest in the Kami LP from Alderon for consideration of between US$15 million to US$23 million.