Alderon Iron Ore may not be able to pay $14 million loan with Sprott

By Devika Patel

Knoxville, Tenn., March 26 – Alderon Iron Ore Corp. may not be able to repay the $14 million loan facility due to Sprott Resource Lending, according to a press release.

The company had counted on funds coming through from a transaction with Tunghsu Group Co., Ltd. but, due to the recent Covid-19 pandemic, Tunghsu has advised Alderon that it is terminating the transaction.

The company said in the release that it does not have any available funding sources to repay the loan prior to March 31.

The company is evaluating potential alternatives, including a renegotiation of the loan facility terms;however, there is no certainty that any alternative will be realized, the release stated.

The iron ore development company is based in Vancouver, B.C.

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