Noront Resources Amends Agreement with Resource Capital Fund

Noront Resources
Noront Resources

Noront Resources
Noront Resources

THUNDER BAY – MINING – Noront Resources Ltd. (“Noront” or the “Company”) (TSX VENTURE: NOT) has entered into an amending agreement dated December 31, 2015 (the “Amending Agreement”) with its largest shareholder, Resource Capital Fund V (“RCF”) to extend the term of its existing US$15 million convertible debenture (the “Convertible Debenture”). The maturity date of the Convertible Debenture has been extended for a period of six months to June 30, 2016, with all other terms and conditions of the Convertible Debenture remaining the same, including the interest rate of 8% per annum payable in shares or cash at the option of RCF.

In addition, the Company has entered into a royalty purchase agreement dated December 31, 2015 (the “Royalty Purchase Agreement”) with RCF pursuant to which it has agreed to sell RCF a royalty equal to one percent (1%) of the net smelter returns from the sale of all metals and minerals derived from the Eagle’s Nest deposit (the “NSR Royalty”) in consideration for US$2.5 million. The Royalty Purchase Agreement contains a buyback provision whereby Noront is entitled, for a period of 30 months, to repurchase 50% of the NSR Royalty for US$3.125 million. The proceeds from the sale of the NSR Royalty will be used to satisfy the repayment of the US$2 million bridge loan with RCF which is scheduled to mature and become due and payable on December 31, 2015 with the remaining funds to be used for working capital purposes.

Closing of the transactions associated with the Amending Agreement and the Royalty Purchase Agreement is expected in January and remain subject to the fulfillment of certain conditions and the approval of the TSX Venture Exchange.

About Noront Resources

Noront Resources Ltd. is focused on development of the high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and the high-grade 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