Alderon Iron Ore Corp announces that it and The Kami Mine Limited Partnership have signed a Memorandum of Understanding with Envest Corp ‒ an independent power producer specialising in the financing, development, ownership and operation of mid-market energy infrastructure projects in North America.
The MOU provides that The Kami LP and Envest will enter into transactions whereby Envest will acquire and manage the equipment that The Kami LP intends to procure from Schneider Electric for use in the Kami Iron Ore Project, located in western Labrador. This transaction is expected to provide up to $35 million for power infrastructure. In addition, Envest and The Kami LP will explore the potential for additional financial solutions from Envest for other equipment that will be utilised in the Kami Project.
“We are thrilled to partner with Envest due to their industry expertise and comprehensive energy solutions for large industrial projects,” said Tayfun Eldem, Alderon’s President and CEO. “The partnership will help us establish one of the elements of a broader equipment financing solution for the Kami Project,” added Eldem.
“We are pleased to be a part of the advanced-stage Kami Project. Our leadership team has decades of experience in the fields of energy development, finance and engineering, and looks forward to collaborating with The Kami LP to structure financing solutions for their energy, automation and process control requirements,” said Jason Moretto, Envest’s President and CEO.
The Kami LP and Envest still need to enter into definitive documentation in order for the transactions set out in the MOU to proceed. There is no certainty that the transactions contemplated in the MOU will be concluded.
“As the demand for premium iron ore strengthens, and with numerous agreements already in place including, release from federal and provincial environmental assessments and receipt of mining and surface leases, conclusion of long-term offtake agreements for 100% of its premium quality concentrates, securing of power and port access contracts, and completion of more than 50% of detailed engineering, the premium-quality Kami Project remains a rare development opportunity in the iron ore industry. Alderon is now focusing on the final de-risking step of completing financing for the Kami Project.”