Noront Extends Debt Arrangement With Resource Capital Funds
June 26 2018 - 10:27AM
Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture:NOT)
has entered into a fourth amending agreement dated June 25, 2018
(the “Fourth 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 approval, the maturity date of
the Convertible Debenture has been extended until January 31, 2019
(previously June 30, 2018) with all other terms and conditions
remaining the same. Interest is paid in common shares,
subject to TSX approval, quarterly in arrears with the interest
rate remaining the same at 8% per annum. The Convertible
Debenture may be converted into Noront Resources common shares at
the option of RCF V at a price of $0.34 cents per share at any time
prior to January 31, 2019.
Certain transactions between Noront and RCF V,
described in this news release, constitute “related party
transactions” within the meaning of Multilateral Instrument
61-101–Protection of Minority Shareholders in Special Transactions
(“MI 61-101”). For these transactions Noront intends to rely on an
exemption from the formal valuation requirements contained in
section 5.5(b) of MI 61-101, on the basis that none of the
Company’s securities are listed on a specified market set out in
such section, and Noront 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 that the transaction
value does not exceed 25% of the Company’s market
capitalization.
Marten Falls First Nation
SharesNoront is issuing 111,111 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 October 5, 2018.
Exploration UpdateCyr Drilling
International in partnership with Webequie First Nation is at site
to begin a five-hole drill program on the McFaulds VMS property,
following up the success of the winter program. In addition, Crone
Geophysics have initiated ground geophysical surveying along
favorable VMS horizons. Drilling and geophysics aim to extend the
strike and dip of the recently discovered McFaulds No. 8 and No. 10
copper-zinc sulphide lenses.
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. For more
information please visit 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
Mandel janice.mandel@stringcom.com (647) 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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