VANCOUVER (miningweekly.com) – Northern Ontario-focused project developer Noront Resources has increased its position as the dominant land-holder in the prospective Ring of Fire (RoF) mining camp after closing the acquisition of 75% of MacDonald Mines’ claims in the region, the company said this week. Through the transaction, valued at about C$750 000, Noront has increased its claim blocks in the RoF from 375 claim units to 522.
Under the terms of the transaction, MacDonald has a 25% carried interest until a National Instrument (NI) 43-101-compliant resource has been issued on one of the properties, at which time MacDonald will have the option to convert the carried interest into a 1% net smelter return royalty.
Should MacDonald choose not to exercise its conversion right, Noront will be able to buy back MacDonald’s 25% interest for C$3-million, payable in cash or shares. If neither the conversion right nor the buyback right are exercised, the parties will form a joint venture to develop the properties. Continue Reading →