Vancouver, British Columbia-based iron ore exploration company Alderon Resources Corporation has announced that it has signed a definitive subscription agreement with China's largest steel producer, Hebei Iron & Steel Group Co. (Hebei Steel).
According to the agreement, Hebei Steel will invest C$194 million in total into both Alderon and its Kami iron ore project in exchange for 19.9 percent of the outstanding common shares of Alderon and a 25 percent interest in a newly formed limited partnership that will be established to own the Kami project.
Hebei Steel will also have the right to buy 60 percent of the iron ore produced annually from the Kami project, once it goes into production.