Noront Closes $3.45 Million Flow-Through Financing, Issues Interest Shares and Issues Options to the Board of Directors
13 April 2019 - 6:48AM
Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture:
NOT) is pleased to announce the closing of a private placement of
11,130,807 Flow-Through Units at a price of $0.31 per Flow-Through
Unit for gross proceeds of $3,450,550 (the “Flow-Through Unit
Offering”).
The proceeds from the Flow-Through Unit Offering
will be used to advance the Company’s exploration program in the
Ring of Fire. The immediate priority is to follow-up on the 26.4
metre massive sulphide intersection in McFaulds drill hole 18-98
which graded 2.1% copper, 3.4% zinc and 5.5 gpt silver. The Company
will also be focusing on its nickel exploration program in response
to interest in the nickel market by battery manufacturers for
electric vehicle use.
Each Flow-Through Unit is comprised of one
common share, which will qualify as “flow-through” shares pursuant
to the Income Tax Act (Canada), 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 $0.34 per share on or before April 12, 2021. The
securities issuable pursuant to the Flow-Through Unit Offering are
subject to a statutory hold period of four months plus one day
which will expire on August 13, 2019.
Beacon Securities Limited acted as financial
advisor and received 326,511 common shares in satisfaction of their
advisory fee. EMD Financial Inc. received a finder’s fee, paid in
common shares, equal to 276,823 common shares in satisfaction of
their finder’s fee. The common shares are subject to a statutory
hold period of four months plus one day which will expire on August
13, 2019.
The Company announces that payment of interest
in the amount of $400,968 for the first quarter of 2019 pursuant to
a loan agreement entered into between Noront and Resource Capital
Funds V L.P. (“RCF”) dated February 26, 2013 (the "Loan Agreement")
has been satisfied by delivery of 1,448,061 common shares of the
Company (the “Interest Shares”) at an effective price of $0.2769
per Interest Share. The Interest Shares were delivered on April 10,
2019 subject to a four month hold period, expiring on August 11,
2019.
The calculation of the number of Interest Shares
issued was based on the volume weighted average trading price of
the common shares of the Company during the 20 trading days prior
to March 31, 2019.
After giving effect to the Flow-Through Unit
Offering and issuance of the Interest Shares, there are 392,716,129
common shares of the Company issued and outstanding.
The Company also announces the grant of stock
options to acquire an aggregate of 1,500,000 common shares to the
Company’s Board of Directors, with an exercise price of $0.26 per
Common Share, the closing market price on the date of grant,
exercisable for a period of five years. The options were granted
pursuant to Noront’s stock option plan. The issuance of the options
is subject to all applicable regulatory and exchange approvals.
About Noront ResourcesNoront
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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