Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture:NOT)
today provided a corporate update and closed a private placement of
flow-through shares.
Road Development Last August, the province announced funding and
support for two First Nation led access road proposals linking the
Ring of Fire and their communities to the provincial highway
system. Since that time Noront has provided support to the
proponent communities for the access roads in order to expedite the
permitting process. The Company has made environmental
assessment and engineering studies available and met with community
groups to provide expertise and organizational input. The
provincial government has assembled a team representing four
ministries which is providing support and guidance.
Upgrades to existing roads are ongoing and environmental
fieldwork which has taken place since earlier this year should
culminate in the filing of project descriptions by mid-year.
Government timelines estimate shovels will be in the ground in
2019.
The Company was also pleased to see the $1 billion previously
allocated by the provincial government to infrastructure spending
in the Ring of Fire was present in the province’s recently
announced 2018 budget.
Exploration Update Noront will continue its copper-zinc focused
exploration program in the second half of 2018 with ground
geophysical surveying and targeted drilling at the Company’s
McFaulds and Butler VMS properties.
The McFaulds program objective is to generate drill targets
using ground electromagnetic (EM) systems and to continue testing
the strike and dip continuity of the newly discovered McFaulds No.
8 and No. 9 sulphide lenses. At Butler, recent soil surveying
identified highly anomalous copper-zinc-silver associated with EM
targets between the No. 3 and No. 4 occurrences.
Flow-through Private PlacementTo finance the
upcoming year of exploration work, Noront closed a private
placement of 10,000,000 flow-through common shares today at a price
of $0.42 per flow-through share for gross proceeds of $4.2 million
(the “Offering”).
These shares will be “flow-through” shares pursuant to the
Income Tax Act (Canada). The flow-through shares are subject
to a statutory hold period of four months plus one day which will
expire on August 10, 2018.
In connection with the Offering, EMD Financial Inc. received a
cash finder’s fee equal to 5% of the gross proceeds up to $1.3
million, a finder’s fee, paid in shares, of 6% of the gross
proceeds in excess of $2.5 million to a maximum of $4.0 million and
a corporate finance fee of $10,750. There were 414,081 common
shares issued at a price of $0.37 per common share in satisfaction
of the share component of the finder’s fee. The common shares
are subject to a statutory hold period of four months plus one day
which will expire on August 10, 2018.
Marten Falls First Nation SharesThe Company
would also like to announce the issuance of 311,111 common shares
to Marten Falls First Nation. These shares are part of an
exploration and pre-development agreement with our First Nation
partner announced on April 13, 2017. The common shares are
subject to a statutory hold period of four months plus one day
which will expire on August 10, 2018.
RCF Interest PaymentThe Company also announces
that payment of interest in the amount of $387,000 for the first
quarter of 2018 pursuant to the Convertible Debenture has been
satisfied by delivery of 1,022,457 common shares of the Company
(the “Interest Shares”) at an effective price of $0.3785 per
Interest Share. The Interest Shares are subject to a four
month hold period, expiring on August 11, 2018.
The calculation of the number of Interest Shares
issued was based on the volume weighted average trading price of
the common shares of the Company during the 20 trading days prior
to March 31, 2018. After giving effect to the private
placement, the issuance of shares to Marten Falls First Nation and
the Interest Shares, there are 358,759,308 common shares of the
Company issued and outstanding.
About Noront ResourcesNoront Resources Ltd. is
focused on the development of its high-grade Eagle’s Nest nickel,
copper, platinum and palladium deposit and the world class chromite
deposits including Blackbird, Black Thor, and Big Daddy, all of
which are located in the James Bay Lowlands of Ontario in an
emerging metals camp known as the Ring of Fire.
www.norontresources.com
Ryan Weston, Noront Vice President, Exploration
M.Sc., MBA, P.Geo and a Qualified Person as defined by National
Instrument 43-101 Standards of Disclosure for Mineral Projects
(“NI-43-101”) has reviewed and approved the technical information
contained in this press release.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For more information:Janice
Mandeljanice.mandel@stringcom.com647-300-3853
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING INFORMATION
This press release includes certain
“forward-looking information” within the meaning of applicable
Canadian securities legislation.
Forward-looking information is based on
reasonable assumptions that have been made by Noront as at the date
of such information and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Noront to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: the
impact of general business and economic conditions; that all
conditions precedent to the transactions will be met; risks related
to government and environmental regulation, actual results of
current exploration activities, conclusions of economic evaluations
(including those contained in the Feasibility Study) and changes in
project parameters as plans continue to be refined; problems
inherent to the marketability of base and precious metals; industry
conditions, including fluctuations in the price of base and
precious metals, fluctuations in interest rates; government
entities interpreting existing tax legislation or enacting new tax
legislation in a way which adversely affects Noront; stock market
volatility; competition; risk factors disclosed in Noront’s most
recent Management’s Discussion and Analysis and Annual Information
Form, available electronically on SEDAR; and such other factors
described or referred to elsewhere herein, including unanticipated
and/or unusual events. Many such factors are beyond Noront’s
ability to control or predict.
Although Noront has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that forward-looking information will prove to be accurate as
actual results and future events could differ materially from those
reliant on forward-looking information.
All of the forward-looking information given in
this press release is qualified by these cautionary statements and
readers are cautioned not to put undue reliance on forward-looking
information due to its inherent uncertainty. Noront disclaims any
intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or
otherwise, except as required by law. This forward-looking
information should not be relied upon as representing the Company’s
views as of any date subsequent to the date of this press
release.
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