Noront Resources announced the closing of its extension on its US$15 million convertible debt debenture.
The Toronto Ring of Fire project developer has extended the term of its US$15 million convertible debt debenture with its largest shareholder, Resource Capital Fund (RCF).
The debt comes due on June 30 with all other terms and conditions remaining the same including the interest rate of 8 per cent per annum payable in shares or cash at the option of RCF.
Noront’s flagship project in the Ring of Fire is its Eagle’s Nest nickel, copper, platinum and palladium deposit in the James Bay region. The company also has a string of chromite deposits in camp, including the Blackbird, Black Thor and Big Daddy.
The company also closed the sale of a 1 per cent net smelter return royalty on Eagle’s Nest to RCF for US$2.5 million.
The agreement contains a buy-back provision whereby Noront can repurchase 50 per cent of the royalty for US$3.125 million for a period of 30 months. The proceeds from this transaction were used to extinguish a US$2 million bridge loan payable to Resource Capital Fund and for working capital.
