TORONTO, Nov. 01, 2019 (GLOBE NEWSWIRE) -- Noront Resources Ltd. (“Noront” or “the Company”) (TSX Venture: NOT) is announcing that it has entered into a seventh amending agreement dated October 31, 2019 (the “Seventh Amending Agreement”) with its largest shareholder, Resource Capital Fund V L.P. (“RCF V”), to extend the term of its existing US$15 million convertible debenture (the “Convertible Debenture”). Subject to TSX Venture Exchange approval, the maturity date of the Convertible Debenture has been extended until November 30, 2019 (previously October 31, 2019). All other material terms and conditions remain the same. The Company is currently in the process of negotiating a longer-term extension with RCF that is envisioned to be completed prior to the termination date of this extension.
RCF V is a “related party” of Noront as RCF V is a person that has beneficial ownership of, and control or direction over, directly or indirectly, securities of Noront carrying more than 10% of the voting rights attached to all of Noront’s outstanding voting securities. As a result, the entering into of the Seventh Amending Agreement is a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), incorporated by reference into Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange. Noront is relying on (i) the exemption set forth in sections 5.5(a) and (b) of MI 61-101 from the formal valuation requirement, and (ii) the exemption set forth in section 5.7(a) of MI 61-101 from the “minority approval” requirement, in connection with entering into the Seventh Amending Agreement.
About Noront Resources
Noront Resources Ltd. is focused on 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
For more information please contact:
Greg Rieveley, CFO