Beijing-headquartered diversified group Tunghsu has signed a letter of intent to acquire a 26% to 38% interest in the Kami Mine Limited Partnership (Kami LP) from Alderon Iron Ore for between $15-million and $23-million, the TSX-listed iron-ore company announced on Tuesday.
Tunghsu will be the second Chinese partner for the proposed western Labrador iron-ore mine, with HBIS Group already owning a 25% interest in Kami LP.
Alderon said it would use a portion of the funds from the Tunghsu investment to repay the $14-million loan facility due to Sprott Resource Lending.
The parties intend to conclude the definitive agreement by March 15, 2020 and close the transaction by April 30, 2020.