Financing deal reached for Alderon's Kami mine

An official with Alderon said they have completed a major funding deal with China's biggest steel maker that will allow progress on the company's Kami project in Labrador West.

Hebei Iron and Steel Group have agreed to invest a total of $182 million in the project, which gives the Chinese company a 25 per cent stake in the shares.

Alderon president Tayfun Eldem said the investment is a major boost for the project.

"It now puts us on solid footing to execute our plans for this year, which is to complete the majority of our detailed engineering, start preparing for construction and, upon release from environmental assessment, commence construction towards the end of this year," Eldem said.

Eldem said construction of a work camp should begin in May or June of this year.

The mine is scheduled to start production in 2015.