- Noront Resources (NOT) intends to complete a private placement of 21,659,385 common shares at a price of $0.283 per share
- The placement is expected to raise gross proceeds of approximately $6.1 million
- The offering is expected to close on or about June 11, 2021
- Noront intends to use the net proceeds to address its near-term working capital commitments
- TD Securities Inc. is acting as agent and financial advisor
- Wyloo Metals has not yet commenced its previously announced takeover bid and such a bid may never materialize
- Noront Resources Ltd. is a mining company
- Noront Resources Inc. (NOT) is up 1.49 per cent, trading at C$0.34 per share at 1:30 pm ET
Noront Resources (NOT) announced its intention to complete a private placement of 21,659,385 common shares at a price of $0.283 per share.
The placement is expected to raise gross proceeds of approximately $6.1 million.
The offering is expected to close on or about June 11, 2021.
Noront intends to use the net proceeds to address its near-term working capital commitments, with any remaining funds to be used to advance the development of its portfolio of properties.
Shares will be distributed in offshore jurisdictions and will not be subject to a statutory hold period in accordance with applicable securities laws.
TD Securities Inc. is acting as agent and financial advisor to Noront in connection with the private placement.
The placement remains subject to the receipt of all necessary approvals, including the final approval of the TSX Venture Exchange.
Pursuant to an investor rights agreement between Noront and Wyloo Canada Holdings Pty Ltd., Wyloo Canada will be entitled to acquire common shares to maintain its equity interest in the company.
If Wyloo Canada chooses to exercise the top-up right in full, then an additional 12,529,229 common shares would be issued to Wyloo Canada for additional gross proceeds of approximately $3.5 million.
Baosteel Resources International Co. Ltd. will also be entitled to acquire Common Shares to maintain its equity interest in the company.
If Baosteel chooses to exercise its top-up right in full and assuming the Wyloo Top-Up Right is exercised, then an additional 1,960,769 common shares would be issued to Baosteel for additional gross proceeds of approximately $0.55 million.
Further Response to Wyloo Proposal
As previously disclosed, on May 25, 2021 Wyloo Metals Pty Ltd., a holder of approximately 23% of Noront’s outstanding common shares, announced its intention to make an offer to acquire all of the outstanding common shares of Noront that it does not already own. Noront wishes to clarify that Wyloo Metals has not yet commenced a takeover bid and such a bid may never materialize.
Wyloo Metals is not permitted to commence a take-over bid until a formal valuation of Noront is completed by an independent evaluator, which may take several weeks to complete. Should Wyloo Metals proceed with a take-over bid, the Board of Directors of Noront will carefully review such offer and provide a recommendation to its shareholders.
The company also wishes to announce that interest in the amount of $370,447.73 payable to Wyloo Canada for the first quarter of 2021 pursuant is proposed to be satisfied by issuing 1,411,767 common shares to Wyloo Canada at an effective price of $0.2624 per share. The issuance of these shares remains subject to the approval of the Exchange.
Noront Resources Ltd. is a mining company. The company is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and the chromite deposits in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.
Noront Resources Inc. (NOT) is up 1.49 per cent, trading at C$0.34 per share at 1:30 pm ET.
