TSX-listed Alderon Iron Ore has confirmed that Sprott Resource Lending would seize the Kami iron-ore project, in the Labrador Trough, after the junior miner failed to repay a $14-million loan that was due by the end of last month.
Alderon said it had explored “all available alternatives”, including a corporate transaction or a further extension with Sprott under a care-and-maintenance scenario.
“Unfortunately despite these efforts, the company has been unable to negotiate an alternative. Sprott has stated it intends to enforce its security and seize the Kami project and all related assets,” it said in a statement issued late on Tuesday.