Alderon closes C$119.9M contribution by Hebei Iron & Steel Group Alderon to announced that Hebei Iron & Steel Group has contributed the remaining C$119.9M of its initial investment and Alderon has contributed the Kami iron ore project to a limited partnership which is owned 25% by HBIS and 75% by Alderon. HBIS is China's largest steel producer. This concludes HBIS's initial strategic investment, first announced on April 13, 2012, into both Alderon and its Kami Project for an aggregate amount of C$182.2 million, in exchange for 19.9% of the outstanding common shares of Alderon and a 25% interest in the Kami Limited Partnership which was established to own the Kami Project. Alderon has the remaining 75% interest in the Kami Limited Partnership.
Alderon announces cash preservation program including workforce reductions Alderon reports that it has implemented a comprehensive cash preservation program that will allow the company to maintain a healthy working capital position into 2017 without the need to access equity or debt financing during the intervening period, aside from the financing required to commence construction at the Kami Iron Ore Project. Measures associated with this program include a number of voluntary vendor payment deferrals and relief from debt servicing requirements such as those outlined in the transaction with Liberty Metals & Mining Holdings described below, and workforce reductions. The company has kept its core team of executives intact which will allow it to continue to advance the Kami Project construction financing efforts and to commence construction in a rapid and seamless manner once such financing has been obtained.