One of China's largest steel producers is buying into Noront Resources' big dig in the Ring of Fire.
Baosteel Resources International is acquiring a 9.9 per cent interest in the Toronto-based nickel and chromite explorer.
Net proceeds of the common share offering will amount to $17.4 million. In a May 2 statement, Noront says Baosteel's equity ownership interest can increase to 14.5 per cent with aggregate proceeds of $11.7 million.
The money is earmarked for completions of feasibility studies for Noront's Eagle's Nest base metal deposit and the Blackbird chromite deposit, including funding to increase the current resource and do other exploration work on their Ring of Fire properties in the James Bay lowlands.
Noront president Wes Hanson said Baosteel's investment is the first step in a potential long-term partnership giving his company access to China's largest steel producers and expanding stainless steel market.
“Baosteel's investment will allow us to proceed with the necessary engineering work to define the value of our discoveries to date in the Ring of Fire while we continue exploring this exciting district with a view towards identifying additional mineral resources.”
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