ONTARIO – Noront Resources and MacDonald Mines, both headquartered in Toronto, have signed a definitive agreement whereby Noront will acquire 75% of MacDonald’s interests in the Ring of Fire region. The sales is subject to the approval of the TSX Venture exchange.
Two claim blocks are included in the deal. The Butler property includes a belt of felsic volcanics that hosts four known zinc-copper rich volcanogenic massive sulphide occurrences. The Sanderson property includes the Big Mac intrusion, a ferro-gabbro area of mineralization. The latter also contains a possible footwall ultramafic intrusion similar in scale to the Black Thor intrusion and having the potential for nickel-copper as well as chromite mineralization.
Noront will issue $750,000 of common shares to MacDonald to earn a 75% interest. MacDonald will have a 25% carried interest until the issuance of a NI 43-101 resource report on one of the properties, at which time MacDonald will have the option to convert the carried interest into a 1% net smelter return. If MacDonald does not elect to exercise its conversion right, Noront can elect to buy back MacDonald’s 25% interest for $3 million, payable in cash or shares at the option of Noront. If neither of these rights are exercised, a joint venture arrangement will be formed between the parties to develop the properties.
The first project on Noront’s priority list is development of the Eagle’s Nest nickel-copper-PGM mine with an 11 to 20-year life. Please see www.NorontResources.com.