Ring of Fire Updates Weekly News Roundup

June 1-7, 2021: Weekly News Roundup

Noront has turned down a $5 million loan from its cornerstone investor, Australian mining giant, Wyloo Metals. The decision was made by Noront’s board arguing that it would be ‘inadvisable’ to incur additional debt given that the company is in the development stage and therefore not bringing in any revenue.

That hasn’t stopped Wyloo Metals’ owner Andrew Forrest from sending a June 1 letter to Matawa First Nations chiefs about his intentions to work in the region long-term. Holding 23% of Noront shares, the company announced last week that it intends to make a formal offer to Noront to purchase the remaining shares of the company but must wait for the results of a valuation of Noront, as required by the Ontario Securities Commission, which will likely take several weeks to complete.

Forrest has also indicated that Wyloo Metals, whose sites are set on the Electric Vehicle market, is more interested in the Eagle’s Nest nickel deposit than Noront’s chromite prospects.

June 7, 2021 (Mining Weekly):

Noront refuses Wyloo loan, opts for private placement

“Ring of Fire nickel developer Noront Resources has turned down a loan from potential suitor Wyloo Metals and will instead opt for a private placement financing.

Noront will place 21.66-million shares at $0.283 each to raise gross proceeds of about $6.1-million.” Read more here…

June 7, 2021 (Northern Ontario Business):

Wyloo Metals would put proposed Sault ferrochrome plant under the microscope, if successful in bid for Noront Resources

Australian mining investor focused on mining, processing nickel for Ontario’s electrical vehicle manufacturers

“The prospective Australian buyer for Noront Resources won’t make any immediate shifts in strategy in the Far North mineral exploration camp should it acquire the Toronto junior mining company. But it will reassess the location of a proposed ferrochrome processing plant slated for Sault Ste. Marie as part of its own independent study.

The head of Wyloo Metals, the Perth-based mining company, is making it clear that the apple of its eye is the high-grade Eagle’s Nest nickel deposit – the lead project in Noront’s mine development pipeline – not so much its chromite prospects.

“The focus is on nickel,” said Luca Giacovazzi in an interview with Northern Ontario Business.Read more here…

June 6, 2021 (Soo Today):

Cash-strapped Noront Resources rebuffs Australian company’s loan offer in Ring of Fire takeover bid

Wyloo is interested in Noront’s high-grade nickel and copper deposit, situated in a remote spot 500 kilometres northeast of Thunder Bay

“Noront Resources is rejecting the offer of a $5-million loan from Australia’s Wyloo Metals, which is seeking to take over the Ring of Fire mine developer.

In a June 4 news release, Noront admitted it “has an immediate need for funding” but intends to go the private placement financing route to raise $6.1 million to keep the company running and to work on its exploration properties in the remote James Bay region.” Read more here…

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