Noront Announces Issuance of Shares
December 02 2019 - 3:22PM
Noront Resources Ltd. (“Noront” or “the Company”) (TSX Venture:
NOT) is announcing that it has issued 200,000 units at an issue
price of $0.20 per unit in satisfaction of consulting fees. Each
unit consists of one common share of the Company and one common
share purchase warrant. Each warrant entitles the holder to acquire
one common share of the Company at a price of $0.30 until December
2, 2021. The issued shares are subject to a four-month hold period
which will expire on April 3, 2020.
The Company also entered into an eighth amending
agreement dated November 27, 2019 (the “Eighth Amending Agreement”)
with its largest shareholder, Resource Capital Fund V L.P. (“RCF
V”), to extend the term of its existing US$15 million convertible
debenture (the “Convertible Debenture”). Subject to TSX Venture
Exchange approval, the maturity date of the Convertible Debenture
has been extended until December 31, 2019 (previously November 30,
2019). All other material terms and conditions remain the same. The
Company is currently in the process of negotiating a longer-term
extension with RCF that is envisioned to be completed prior to the
termination date of this extension.
Certain of the transactions described in this
news release between the Company and RCF constituted “related party
transactions” within the meaning of Multilateral Instrument 61-101
– Protection of Minority Shareholders in Special Transactions (“MI
61-101”). For this transaction the Company intends to rely on the
exemption from the formal valuation requirements of MI 61-101
contained in section 5.5(b) of MI 61-101 on the basis that no
securities of the Company are listed on a specified market set out
in such section, and the Company intends to rely on the exemption
from the minority shareholder approval requirements of MI 61-101
contained in Section 5.7(1)(e) of MI 61-101 on the basis of
financial hardship if the Convertible Debenture is not
extended.
About Noront ResourcesNoront
Resources Ltd. is focused on 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
For more information please contact:Greg
Rieveley, CFO greg.rieveley@norontresources.com(416) 367-1444
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