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Noront raises $1.2 million through private placement

Proceeds to be used for negotiations with Indigenous communities
Webeque drum ceremony Eagle's Nest
Noront Resources announced Oct. 12 it had secured $1.2 million in capital toward negotiations with Indigenous communities of a pre-development agreement for its Eagle’s Nest project. Pictured is a Webequie drum ceremony at the Eagle's Nest site. (Noront photo)

Noront Resources has raised $1.2 million in capital, the proceeds of which will be used for negotiations with Indigenous communities of a pre-development agreement (PDA) for the Eagle’s Nest project in the Ring of Fire.

On Oct. 12 the company announced it had raised $1,249,500 through a non-brokered private placement of 3.4 million common shares, at a price of $0.3675 per share, with RCF V Annex Fund L.P.

The company previously announced it had signed an exploration and project advancement agreement with Marten Falls First Nation, which committed both parties to complete the PDA within a year.

“The PDA details how the two parties will work together during the permitting, construction and operation of the mine and is used to inform the final feasibility study and the ultimately the impact benefit agreement (IBA),” Noront said in a release.

Noront simultaneously announced it has extended its $15-million loan agreement with Resource Capital Fund V.L.P., an affiliate of RCF V Annex, until June 30, 2018. The agreement formerly was set to expire on Dec. 31.

Noront’s Eagle’s Nest project is a nickel, copper, platinum and palladium deposit in the Ring of Fire area in the James Bay lowlands.

The company has said it planned to bring Eagle’s Next into production first, followed by the start of construction of its Blackbird chromite deposit.

On Aug. 21. the province made the long-awaited announcement that it had started planning for an access road into the Ring of Fire and would work with Webequie, Marten Falls and Nibinamik First Nations to “plan and construct a year-round access road into the proposed mining development side being pursued by Noront Resources."