CLEVELAND, April 28, 2015 /PRNewswire/ -- Cliffs
Natural Resources Inc. (NYSE: CLF) is pleased to announce
that it has completed the sale of its Chromite assets in
Northern Ontario, Canada to Noront
Resources Ltd. The assets were sold under a revised purchased
agreement for US$27.5 million in
cash, which is an increase of U.S. $7.5
million over the previously announced sale price of
US$20 million.
The assets are comprised of three chromite deposits and
associated claims held by Cliffs subsidiaries. The transaction
closed today following the approval of the sale by the court under
the Companies' Creditors Arrangement Act ("CCAA") proceedings in
Canada.
The Company stated that this transaction is another step in
divesting interests in non-core assets and that the proceeds of the
sale will be used substantially to cover costs and expenses
associated with the CCAA proceeding.
Moelis & Company acted as financial advisor to Cliffs
Natural Resources Inc.
About Cliffs Natural Resources Inc.
Cliffs Natural
Resources Inc. is a leading mining and natural resources company in
the United States. The Company is
a major supplier of iron ore pellets to the North American steel
industry from its mines and pellet plants located in Michigan and Minnesota. Cliffs also operates an iron ore
mining complex in Western
Australia. Additionally, Cliffs produces low-volatile
metallurgical coal in the U.S. from its mines located in
Alabama and West Virginia.
Driven by the core values of safety, social, environmental and
capital stewardship, Cliffs' employees endeavor to provide all
stakeholders operating and financial transparency.
Forward-Looking Statements
This release contains
forward-looking statements within the meaning of the federal
securities laws. Although Cliffs believes that these
forward-looking statements and the underlying assumptions are
reasonable, we cannot assure you that they will prove to be
correct. Forward-looking statements involve a number of risks and
uncertainties, and there are factors that could cause actual
results to differ materially from those expressed or implied in our
forward-looking statements. These risk factors include without
limitation: our ability to successfully execute an exit option for
our Bloom Lake mine that minimizes the cash outflows and associated
liabilities of our Canadian operations including the Companies'
Creditors Arrangement Act (Canada)
process; trends affecting our financial condition, results of
operations or future prospects, particularly the continued
volatility of iron ore and coal prices; our actual levels of
capital spending; availability of capital and our ability to
maintain adequate liquidity and successfully implement our
financing plans; uncertainty or weaknesses in global economic
conditions, including downward pressure on prices, reduced market
demand and any slowing of the economic growth rate in China; our ability to successfully identify
and consummate any strategic investments and complete planned
divestitures; the outcome of any contractual disputes with our
customers, joint venture partners or significant energy, material
or service providers or any other litigation or arbitration; the
ability of our customers and joint venture partners to meet their
obligations to us on a timely basis or at all; our ability to reach
agreement with our iron ore customers regarding any modifications
to sales contract provisions; the impact of price-adjustment
factors on our sales contracts; changes in sales volume or mix; our
actual economic iron ore and coal reserves or reductions in current
mineral estimates, including whether any mineralized material
qualifies as a reserve; the impact of our customers using other
methods to produce steel or reducing their steel production; events
or circumstances that could impair or adversely impact the
viability of a mine and the carrying value of associated assets, as
well as any resulting impairment charges; the results of
prefeasibility and feasibility studies in relation to projects;
impacts of existing and increasing governmental regulation and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorization of, or from, any governmental
or regulatory entity and costs related to implementing improvements
to ensure compliance with regulatory changes; our ability to
cost-effectively achieve planned production rates or levels;
uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; adverse
changes in currency values, currency exchange rates, interest rates
and tax laws; our ability to maintain appropriate relations with
unions and employees and enter into or renew collective bargaining
agreements on satisfactory terms; risks related to international
operations; availability of capital equipment and component parts;
the potential existence of significant deficiencies or material
weakness in our internal control over financial reporting; problems
or uncertainties with productivity, tons mined, transportation,
mine-closure obligations, environmental liabilities,
employee-benefit costs and other risks of the mining industry; and
other factors and risks that are set forth in the Company's most
recently filed reports with the U.S. Securities and Exchange
Commission. The information contained herein speaks as of the date
of this release and may be superseded by subsequent events. Except
as may be required by applicable securities laws, we do not
undertake any obligation to revise or update any forward-looking
statements contained in this release.
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SOURCE Cliffs Natural Resources Inc.