Noront Resources

High-grade Ni-Cu-Pt-Pd-Au-Ag-Rh-Cr-V discoveries in the "Ring of Fire" NI 43-101 Update (March 2011): 11.0 Mt @ 1.78% Ni, 0.98% Cu, 0.99 gpt Pt and 3.41 gpt Pd and 0.20 gpt Au (M&I) / 9.0 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inf.)

Home Videos Research Press Release Q&A Discussion

Threads Posts

Re: Multilateral Instrument 11-102

Noront Resources

over 9 years ago

in response to Babjak1's message

I think it's nothing more than a coincidence that Rubicon and Noront filed short form prospecti (prospectuses?), and that Rubicon announced a debt security financing for $50 million the same day Noront filed for the same amount.

The preliminary filing allows Noront to shop around for financing through a variety of possible offerings, so long as the market value of those offerings does not exceed $50 million, and they complete the transactions within 25 months of the preliminary prospectus filing date.

Once Noront has specified the terms for a specific offering under the umbrella of this preliminary prospectus, they will file a prospectus supplement that makes those terms clear. So long as they have not yet hit the $50 million ceiling, they can go on to strike the same or different terms with other investors, with those new terms also described by a prospectus supplement filing.

I should note, though, that the Rubicon agreement with CPP is wonderful. It is a low-interest credit facility, with warrants attached. If the warrants come in the money, yes there is dilution, but that capital also goes into the Rubicon treasury.

Lar