Update on Noront Ferrochrome Production Facility

by Keith Powell
Logo of Noront Resources Ltd.

— Photo courtesy Noront Resources Ltd.

Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture:NOT) announced that it has reduced the choice of prospective locations for its proposed ferrochrome production facility (FPF) to two Northern Ontario cities: Timmins or Sault Ste. Marie. Both Thunder Bay and Sudbury have been removed from further consideration.

Four communities participated in the bidding process which began in February 2018. The submissions were evaluated based on a comprehensive set of criteria determined by Noront and the engineering firm Hatch which was engaged to assist in the adjudication process. Critical factors included environmental and site suitability, capital costs, operating costs and an assessment of community acceptance of hosting the facility.

“The quality of the submissions was outstanding and demonstrated a significant effort by each of the communities involved,” said Noront President and CEO Alan Coutts. “They each provided a compelling case that illustrated the merits of their location as a host for the ferrochrome production facility.”

While the Sudbury proposal had the lowest operating cost, it included significant capital costs such as site preparation earthworks and reestablishment of critical infrastructure. It also faced strong opposition from the local community.

Thunder Bay, on the other hand had strong community support, including that of Fort William First Nation; however, the presence of a water body transecting the property reduced the environmental acceptability of the site and costly power infrastructure needs created a further issue.

The next and final phase of the site selection process is now underway. It includes substantial negotiation of commercial use terms with the owners of the two favoured sites. Noront expects this stage of definition to be concluded in the fourth quarter of 2018. 

RCF Interest Payment

The Company also announces that payment of interest in the amount of $393,990 for the second quarter of 2018 pursuant to the Convertible Debenture has been satisfied by delivery of 1,071,207 common shares of the Company (the “Interest Shares”) at an effective price of $0.3678 per Interest Share.  The Interest Shares are subject to a four month hold period, expiring on November 13, 2018.

The calculation of the number of Interest Shares issued was based on the volume weighted average trading price of the common shares of the Company during the 20 trading days prior to June 30, 2018.  After giving effect to the private placement, the issuance of shares to Marten Falls First Nation and the Interest Shares, there are 361,913,753 common shares of the Company issued and outstanding.

About Noront Resources

Noront Resources Ltd. is focused on the 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. For more information, please visit www.norontresources.com.

Related articles

Aerial view of the Brucejack Mine in Northern British Columbia.
Mining Insider, Mines, British Columbia Pretium’s Brucejack approved for production boost to 3,800 tonnes per day — +33.9% daily increase

Pretium Resources Inc. has received the amended permits to increase the Brucejack Mine production rate to 3,800 tonnes per day

Wheaton Precious Metals Corp. logo
Mining Insider, Mines, Global Wheaton Precious Metals reaches settlement on Canadian tax dispute regarding foreign income

Wheaton does not anticipate any additional cash taxes will arise in respect of the 2005 to 2010 taxation years as a result of the settlement

Map of West Bear Property.
Mining Insider, Mines, Saskatchewan UEX announces West Bear Winter Program

Focus on expanding the West Bear Co-Ni Deposit

View all Mining Insider articles