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Guest Dazel

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i think there was a link to blog post a while back on this thread about that.

Yes I remember a blog post saying Alderon could only expand output to 16 million tonnes if the dam was built and that it wa no sure thing that it would, but this is the first I'd heard of Altius possibly securing a royalty on the power dam output.  Maybe Im reading this wrong but thats what it looks like to me.

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i think there was a link to blog post a while back on this thread about that.

Yes I remember a blog post saying Alderon could only expand output to 16 million tonnes if the dam was built and that it wa no sure thing that it would, but this is the first I'd heard of Altius possibly securing a royalty on the power dam output.  Maybe Im reading this wrong but thats what it looks like to me.

 

it seems the blog we were talking about it and is getting sued are the same.

http://rocksolidpolitics.blogspot.ca/

http://www.winnipegfreepress.com/canada/former-premier-danny-williams-sues-muskrat-falls-critics-for-alleged-defamation-162228675.html

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Guest Dazel

Altius has had this in the works for a long time...they would create a royalty trust and raise money for the royalty trust that would then buy future power income stream from the Lower Churchill power project. The same way that a mining royalty is set up. They would put up some capital but the majority would come from outside parties to raise money for the project they would become shareholders in the royalty trust that would get it's income from the future revenue from the project. The government looked at it as a unique way to let the people have a chance to participate in profit sharing for the project while raising money that would not require the province to issue debt.

 

 

 

Dazel.

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Guest Dazel

 

 

Liberty,

 

The Alderon release was expected of course which is good news...however, the better news is how quickly it was done...The feasibility study is the next major milestone...that brings the financing cash and they are off to the production races...the speed at which things are done now are the key. They said the feasibility study will be out before yearend...but I would expect it by  quarters end. Once that is done...look out.

 

Dazel.

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Hey guys!

 

I am new to this board - although I was reading as a guest for some month now. I finally decided to join your greatly appreciated discussion!

 

Personally I love ALS and am very comfortable that it represents about 12% of my portfolio right now. In fact I am planning to accumulate more as these price levels represent a great opportunity to buy quality with upside (I estimate fair value at about 21$ / share) and very, very limited downside.

 

Doing my DD I created a Fact Sheet (A3-format) which I updated today. So as my first contribution to this board I uploaded it and maybe someone of you will find some value in it. I would love to hear some corrections or some missing facts that are important.

 

Anyway here is the link

http://ihre-hoheit.de/2012_07_13_DD_ALS_%28A3%29.pdf

 

Best regards from germany,

hohi

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Hey guys!

 

I am new to this board - although I was reading as a guest for some month now. I finally decided to join your greatly appreciated discussion!

 

Personally I love ALS and am very comfortable that it represents about 12% of my portfolio right now. In fact I am planning to accumulate more as these price levels represent a great opportunity to buy quality with upside (I estimate fair value at about 21$ / share) and very, very limited downside.

 

Doing my DD I created a Fact Sheet (A3-format) which I updated today. So as my first contribution to this board I uploaded it and maybe someone of you will find some value in it. I would love to hear some corrections or some missing facts that are important.

 

Anyway here is the link

http://ihre-hoheit.de/2012_07_13_DD_ALS_%28A3%29.pdf

 

Best regards from germany,

hohi

 

Lots of work in there! Thanks it's a great 1 pager.

 

BeerBaron

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http://www.alderonironore.com/_resources/news/2012-07-16-NewsRelease.pdf

 

Alderon Iron Ore Corp. (TSX: ADV) (NYSE MKT: AXX) ("Alderon" or the “Company”) is pleased to

announce that it has signed an agreement (the “Port Agreement”) with the Sept-Îles Port Authority (the

“Port”) to ship up to 8 million metric tonnes of iron ore annually via the new multi-user deep water dock

facility that the Port is constructing (see Alderon press release dated February 14, 2012).

 

“We are extremely pleased to have concluded this port agreement, which represents another significant

milestone in the development of our Kami Iron Ore Project,” says Tayfun Eldem, President and CEO of

Alderon. “This agreement provides Alderon with confirmed access to the international iron ore markets

and substantially de-risks the Kami Project.”

 

Port Agreement Details

 

Pursuant to the Port Agreement, Alderon has reserved an annual capacity of 8 million metric tonnes of

iron ore that it can ship through the Port. In order to finance the estimated $220 million cost of the new

multi-user dock facility, the Port required binding commitments from the potential end-users to provide a

portion of the necessary funds. This buy-in payment will constitute an advance on  Alderon’s future

shipping fees (wharfage and equipment fees) and, as a result, Alderon will receive a discount on its

shipping fees until the full amount of the buy-in payment has been repaid through the discount.

Based on its reserved annual capacity, Alderon’s buy-in payment is $20.46 million, payable in two

installments of $10.23 million each. The first installment of $10.23 million was paid upon signing of the

Port Agreement and the second payment of $10.23 million is due no later than July 1, 2013. As security

for the second payment, Alderon is required to provide an irrevocable guarantee of equivalent value.

The Port Agreement includes a base fee schedule regarding wharfage and equipment fees for iron ore

loading for  Alderon’s  shipping operations. The rates commence in 2014 and are on a sliding scale

based on the volume of iron ore that is shipped. The term of the agreement is for 20 years from the

execution date, with the option to renew for further five year terms, to a maximum of four renewals.

Bridge Financing Details

 

Liberty Metals  & Mining Holdings, LLC (“LMM”), a subsidiary of Liberty Mutual Insurance, one of

Alderon’s strategic investment partners,  provided a bridge loan to Alderon in the amount of $10.5

million in order for Alderon to make the first instalment payment and has agreed to provide a further

$10.5 million, if necessary, in order for Alderon to obtain the  guarantee  required  for the second

installment. The intention is that the loan will be a short term bridge loan that will be repaid from the

funds of the Hebei Iron & Steel Group (“Hebei”) transaction after it closes.

 

The maturity date of the bridge loan is September 30, 2012; however, Alderon has the ability to extend

the maturity date to March 31, 2014. In the event of such extension, the loan becomes convertible at

LMM’s option into Alderon common shares at a conversion price equal to the volume weighted average

trading price of Alderon’s common shares on the Toronto Stock Exchange for the five days prior to the

date that LMM delivers a conversion notice.

 

The loan is secured with a mortgage over the Kami property and bears interest at a rate of 8% per

annum, calculated and payable on September 30, 2012. In the event the Company exercises its option to extend the maturity date, the interest rate will increase to 9.5% per annum beginning on October 1,

2012.

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Guest Dazel

 

 

Eric Sprott has said that 9 of the companies they own have had take over offers on average 40% premiums and for cash in the last 4 months.

 

He says china is buying up resources where they can.

 

Dazel.

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