BEIJING, Aug. 16, 2012 /CNW/ - Hebei Iron & Steel Group Co., Ltd. ("Hebei") announced today an amendment to the terms of a subscription agreement dated April 13, 2012 (the "Subscription Agreement") between Hebei and Alderon Iron Ore Corp. ("Alderon"). Pursuant to the original terms of the Subscription Agreement, Hebei had agreed to acquire 25,828,305 common shares (the "Shares") of Alderon, representing 19.9% of the issued and outstanding common shares of Alderon, by way of a private placement (the "Private Placement") at a price of Cdn.$3.42 per Share, for an aggregate purchase price of Cdn.$88,332,803. Pursuant to the amendment, Hebei has agreed to acquire the Shares at a price of Cdn.$2.41 per Share for an aggregate purchase price of approximately Cdn.$62,246,215. Closing of the Private Placement remains subject to receipt of all necessary approvals, including outstanding government approvals in the People's Republic of China ("PRC Approvals") and the approvals of the Toronto Stock Exchange and the NYSE Amex. Hebei expects to receive all necessary PRC Approvals on or before August 20, 2012. There have been no other amendments to the transactions contemplated by the Subscription Agreement. Hebei will make a strategic investment into both Alderon and its Kami iron ore project in an aggregate amount of Cdn$182,246,215 (reduced from $194,000,000 prior to the amendment), which includes the Private Placement and a 25% interest in a newly formed limited partnership that will be established to own Alderon's Kami iron ore project.
SOURCE: Hebei Iron & Steel Group Co., Ltd.
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