Noront Closes $3.75 Million Financing With Resource Capital Funds Support
07 November 2018 - 1:05AM
Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture:
NOT) is pleased to announce the closing of a private placement of
(i) 5,349,288 units at a price of $0.295 per unit, for gross
proceeds of $1,578,040 (the “Unit Offering”) and (ii) 6,491,433
common shares, which will qualify as “flow-through” shares pursuant
to the Income Tax Act (Canada), at a price of $0.335 per
flow-through common share, for gross proceeds of $2,174,630 (the
“Flow-Through Offering”).
The Company is pleased with the participation of
RCF V Annex Fund L.P. (“RCF V Annex”) in the Unit Offering as it
demonstrates their continued support for the ongoing development of
the Company’s projects in the Ring of Fire. The proceeds from
the Unit Offering will be used to advance development of the
Company’s projects and for working capital purposes.
The proceeds from the Flow-Through Offering will
be used to advance the Company’s exploration program in the Ring of
Fire. The immediate priority is to follow-up on previously
announced drilling results from the Company’s copper-zinc discovery
at its McFaulds Lake property.
Each Unit is comprised of one common share in
the capital of the Company and one-half of one common share
purchase warrant, with each whole warrant entitling the holder to
purchase one common share at a price of $0.35 per share on or
before November 5, 2020. The securities issuable pursuant to both
the Unit Offering and Flow-Through Offering are subject to a
statutory hold period of four months plus one day which will expire
on March 6, 2019.
In connection with the Flow-Through Offering,
EMD Financial Inc. and Beacon Securities received a finder’s fee,
paid in common shares, equal to 6% of the gross proceeds of the
Flow-Through Offering. There were 389,486 common shares
issued at a price of $0.335 per common share in satisfaction of the
finder’s fee. The common shares are subject to a statutory
hold period of four months plus one day which will expire on March
6, 2019.
Certain of the transactions described in this
news release between the Company and Resource Capital Fund V L.P.
(“RCF V”), an affiliate of RCF V Annex (together “RCF”), 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, the
Company intends to rely on the exemption from the formal valuation
and minority shareholder approval requirements of MI 61-101
contained in Section 5.5(b) and Section 5.7(1)(a) of MI 61-101 on
the basis that the securities of the Company are not listed on a
specified market and the transaction value does not exceed 25% of
the Company’s market capitalization.
About Noront Resources
Noront 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. www.norontresources.com
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
Mandeljanice.mandel@stringcom.com647-300-3853
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