Fossil this is a copy/paste from sept. 14 Sedar. page 15 of 18
"The Corporation has agreed to the further condition for sales of Securities through this Prospectus that the maturity of the existing US$15 million loan from Resource Capital Funds be extended to not earlier than December 31, 2016. "
Noront had a prospectus set up for 50 million dollars and a condition being the loan be extended to not earlier than Dec.31, 2016.
During this time ....there were issues of discontentment displayed in the media.
As an example
http://business.financialpost.com/news/top-ring-of-fire-miner-threatens-to-halt-project-unless-ontario-first-nations-make-progress
"The company is expected to halt spending on its Eagle’s Nest project in the Ring of Fire by the end of the year if it does not see any progress. In that scenario, Toronto-based Noront would lay off most of its workers and go down to a skeleton staff"
Noront did not decide to set up a 50 million dollar prospectus and have a condition of the loan extention to Dec.31, 2016.. without ...discussion with Dave Thomas who sits on the board of directors.
With the threats of halting the project....this prospectus/extension to end of year, made sense to the team at Noront....back in Sept. 2015.
Then something changed.
Trudeau got into power...
The atmosphere ..changed.
Jan. 14, 2016, we get this news release:
TORONTO, ONTARIO—January 14, 2016—Noront Resources Ltd. ("Noront" or the "Company") (TSX Venture: NOT) is pleased to announce the closing of the previously announced extension on it US$15 million convertible debt debenture and sale of a 1% NSR.
Noront has extended the term of its US$15 million convertible debt debenture with its largest shareholder, Resource Capital Fund V (RCF). The debt now comes due on June 30, 2016
And on Jan. 27, 2016 we get this news release:
Preliminary Shelf Prospectus dated September 11, 2015
Withdrawn on January 27, 2016
=============================================================
The prospectus was withdrawn 13 days later....if money was needed for drilling why not raise it before cancelling this prospetus which was withdrawn 13 days later.
Positive things have taken place. Otherwise, there would have been NO UTEM5 and no upcoming drilling....and I doubt very much a
What would be the point?
Personally, I view cancellation of the 50 million dollar pp/ loan date of June 2016/ and drilling vs: Halt of spending on the eagles nest
