THUNDER BAY — An Australian-based investor has struck a deal to purchase a stake in Noront Resources, the mining company working to develop mineral deposits in the Ring of Fire.
Wyloo Metals is the mining division of Tattarang, one of Australia's largest private investment groups.
Noront's assets include the high-grade Eagle’s Nest nickel project in the Ring of Fire.
"Eagle’s Nest is the largest high-grade nickel discovery in Canada since the find at Voisey’s Bay [in Labrador in 1993] and is anticipated to have an initial mine life of 11 years, with the potential for an additional nine years. This excludes the development of the adjacent chromite resources, which presents a further development opportunity," Wyloo stated in a news release Monday.
The company will acquire the equity and debt interests in Noront currently controlled by Resource Capital Fund V L.P.
It will pay US$11.5 million for about 22.5 per cent of Noront's common shares, and will also purchase a convertible loan for US$15.0 million.
The Australian firm will then become a "control person" of Noront and will have the right to nominate two members to the board of directors.
Noront President and CEO Alan Coutts welcomed the company's new cornerstone security holder.
"It's exciting to partner with a company whose values parallel our own principles. Wyloo makes long-term strategic investments in companies that mine responsibly, and that aligns very well with the approach Noront is taking as we develop the Ring of fire in an environmentally responsible manner in collaboration with our First Nation partners," Coutts said.
Wyloo spokesperson Luca Giacovazzi said the partnership presents a unique opportunity to join forces with a proven management team in the development of the Eagle's Nest deposit and the continued exploration of the Ring of Fire.
"This investment reflects a long-term and collaborative strategy to support the development of the next generation of mines required to meet the growing demand of critical materials needed to power the decarbonization of the global economy," he added.
Development of the Ring of Fire region will require the permitting and construction of an approximately 300-kilometre all-season road link to the provincial highway system.
