ONTARIO – Spunky Toronto-based junior, Noront Resources, has offered US$20 million to acquire the subsidiaries of Cliffs Natural Resources that hold claims in the Ring of Fire, 500 km northeast of Thunder Bay. Cliffs abandoned its projects in the region late in 2013, and put them up for sale. Noront is purchasing huge potential for a pittance.
The sale will result in Noront acquiring 103 claims in the region, including a 100% interest in the Black Thor chromite deposit, a 100% interest in the Black Label chromite deposit, and a 70% interest Big Daddy chromite deposit (the remaining 30% belongs to Toronto’s KWG Resources). Noront will also become the 85% owner of the McFaulds Lake copper-zinc property.
Noront has secured a US$22.5-million financing with Franco-Nevada Corp. with which to purchase the shares of the Cliffs’ subsidiaries. The financing is for a five-year period and carries an interest rate of 7%. Franco-Nevada will be granted a 3% royalty on the Black Thor chromite deposit and a 2% royalty over all of Noront’s other properties in the region except for Eagle’s Nest. For the royalties, Noront will receive an additional US$3.5 million.
Subject to certain conditions, the transaction is to close in mid-April 2015.
Please see NorontResources.com for additional information about Noront’s Ring of Fire projects.