Noront Resources has completed a brokered placement worth $17.4 million, the Toronto-listed junior explorer announced yesterday. The deal will give Baosteel the right to increase its stake in Noront to 19.9%. It will also give Baosteel, a large steel producer owned by the Chinese government, a seat on Noront’s board of directors.
Proceeds from the placement will be used for feasibility studies on Noront’s Eagle’s Nest nickle-copper-palladium property and the Blackbird chromite deposit in the Ring of Fire poly-metallic mining district in northern Ontario, Canada.
“Baosteel’s investment in Noront provides the necessary funds to advance the feasibility study on both the Eagle’s Nest nickel, copper, PGE deposit and the Blackbird chromite deposits as well as allow Noront to maintain its project schedule with planned production from Eagle’s Nest commencing in 2015/2016,” said Wes Hanson, Noront’s President and CEO. “This initial investment lays the groundwork for a long-term partnership that would provide key financial and technical support to Noront. This includes access to China’s rapidly expanding stainless steel markets, knowledge in sales of concentrates and technical assistance with the processing of chromite for the production of ferrochrome.”
For more details click on the full press release