TORONTO (miningweekly.com) – Noront Resources, the largest landowner in Northern Ontario’s Ring of Fire chromite and nickel mining camp, has raised gross proceeds of C$6.33-million after closing its short-form prospectus offering.
The company announced on Thursday that it had issued the maximum number of units and flow-through units under the base deal, and that the agent, Secutor Capital Management, had exercised its overallotment option.
Noront had raised C$4.3-million from selling 12.3-million units at C$0.35 each, with each such unit consisting of one common share and one common share purchase warrant. Each whole warrant would entitle the holder to buy one common share at a strike price of $0.50 a share on or before March 17, 2019.
Further, Noront raised $2.02-million from selling 4.5-million flow-through units at a price of $0.45 apiece, with each such flow-through unit consisting of one flow-through common share and one-half of one common share purchase warrant - each whole warrant entitling the holder to buy one common share at a price of $0.55 a share on or before March 17, 2019.
The proceeds from the sale of the units would be used for general working capital and the proceeds from the sale of the flow-through units would be used by Noront to incur eligible Canadian Exploration Expenses, as defined by the Income Tax Act.