DEALS
ZhongLun Adviced HBIS on Strategic Investment in Canada
ZhongLun Adviced HBIS on Strategic Investment in Canada
Hebei Iron & Steel Group Co., Ltd. (hereinafter “HBIS") and Alderon Iron Ore Corp. (hereinafter “Alderon") recently jointly announced that, HBIS has contributed C$119.9 million to Alderon’s Kami iron ore project in exchange for 25% interest of project. In 2012, HBIS concluded an investment in Alderon for 19.9% of its outstanding common shares.
As the legal advisor of HBIS, Partner SUN Wei of Zhong Lun Law Firm and his team provided legal services regarding the deal.
Ranked 269th in Fortune Global 500, HBIS is China’s largest steel producer and third largest in the world. Alderon is a leading iron ore development company in Canada listed on both the Toronto Stock Exchange and the New York Stock Exchange.
Kami Project is located within Canada’s premier iron ore district, Labrador. HBIS will purchase, with a discount, 60% of the Kami Project’s actual output, expected to be 8.0 million tonnes of iron ore concentrate annually. The Kami deal marks HBIS’s first investment in the Canadian mining industry and its largest outbound investment to date, through which HBIS expects to establish a diversified, stable, economical, secure and sustainable supply line.
