ADV Alderon Iron Ore Corp

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Alderon Resource Corp. (TSX VENTURE:ADV)(OTCQX:ALDFF) ("Alderon") is pleased to
announce that it has entered into an agreement with a syndicate of underwriters
led by Haywood Securities Inc. (the "Underwriters"), whereby the Underwriters
have agreed to purchase, on a bought deal basis, 7,300,000 units (the "Units")
of the Company at a price of per Unit of C$2.20 (the "Issue Price") for
aggregate gross proceeds to the Company of C$16,060,000 (the "Offering"). Each
Unit will consist of one common share in the capital of the Company (a "Common
Share") and one-half of one common share purchase warrant. Each whole common
share purchase warrant (a "Warrant") will entitle the holder to acquire one
Common Share at a price of C$2.80 for a period of 24 months from the closing of
the Offering.


Following the closing of the Offering, if the closing price of the Common Shares
of the Company on the TSX-V is greater than C$4.00 per share for 20 consecutive
trading days, the Company may give written notice to warrantholders that the
Warrants will expire 20 calendar days after the Company issues a news release
disclosing the early expiry of the Warrants.


The Company has also granted the Underwriters an over-allotment option
exercisable up until the closing of the Offering, to purchase up to an
additional C$4,015,000 of Units at the Issue Price.


The Company intends to use the net proceeds of the Offering to continue to
advance its Kamistiatusset project located in the Labrador Trough iron ore
district in Canada, and for general corporate and working capital purposes.


The Company has agreed to pay the Underwriters a cash commission equal to 6.0%
of the gross proceeds of the Offering and to issue compensation options
entitling the Underwriters to purchase such number of Units that is equal to
6.0% of the aggregate number of Units sold pursuant to the Offering, at an
exercise price equal to the Unit Price, for a period of 24 months following the
closing of the Offering.


The Units to be sold under this offering will be offered by way of a private
placement in the Provinces of Canada (and will also be offered in the United
States on a private placement basis pursuant to an exemption from the
registration requirements of the United States Securities Act of 1933, as
amended).


The Offering is subject to receipt of all necessary corporate and regulatory
approvals, including the approval of the TSX Venture Exchange. All securities
issued in connection with the Offering will be subject to a statutory hold
period of four months plus one day from the date of issuance in accordance with
applicable securities legislation.


The securities being offered hereby have not been, nor will they be, registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States or to, or for the account or benefit of,
U.S. persons absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any state or province in which such offer, solicitation or sale
would be unlawful.


About Alderon Resource Corp.

Alderon is a leading iron ore exploration and development company in Canada. The
Kami Project is located within an existing iron ore district and is surrounded
by producing iron ore mines. The Alderon team is comprised of skilled
professionals with significant iron ore expertise to advance Kami towards
production.


For more information on Alderon, please visit our website at www.alderonmining.com.

ALDERON RESOURCE CORP.

On behalf of the Board

Mark J. Morabito, President & CEO

Alderon Iron Ore Corp (TSXV:ADV)
Historical Stock Chart
From Jun 2024 to Jul 2024

Alderon Iron Ore Corp (TSXV:ADV)
Historical Stock Chart
From Jul 2023 to Jul 2024