ONTARIO – Noront Resources of Toronto and Baosteel Resources International, owned by the Chinese government, have signed a binding term sheet for a non-brokered private placement that will put $17.4 million into Noront’s treasury. The proceeds will be used to advance the feasibility studies on the Eagle’s Nest nickel-copper-platinum deposit and the Blackbird chromite deposit in the James Bay Lowlands.
Noront will issue units, each worth $0.86, to Baosteel. Each unit will consist of one common share and one-half of one common share purchase warrant. If Baosteel exercises all its warrants, Noront will receive an additional $11.7 million. In that case, Baosteel would own a 14.15% interest in Noront. The offering also allows Baosteel to nominate one individual to Noront’s board of directors.
Noront holds mineral title to the largest area in the Ring of Fire, an emerging multi-metals district in northern Ontario. The Eagle’s Nest and Blackbird chromite deposits are part of Noront’s McFaulds Lake project.
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