Noront Resources Announces Closing Of Private Placement Of Flow-Through Shares And Issuance Of Interest Shares
Tuesday, November 01, 2016
Noront Resources Announces Closing of Private Placement of Flow-Through Shares and Issuance of Interest Shares
12:54 EDT Tuesday, November 01, 2016
TORONTO, ON --(Marketwired - November 01, 2016) - Noront Resources Ltd. ("Noront" or the "Company") (TSX VENTURE: NOT) today announces the closing of a private placement of 9,299,666 flow-through shares at a price of $0.30 per flow-through share for gross proceeds of $2,789,900. The Company intends to use the proceeds for its exploration program in the Ring of Fire.
The flow-through shares will be "flow-through" shares pursuant to the Income Tax Act (Canada). The flow-through shares are subject to a statutory hold period of four months plus one day which will expire on March 1, 2017.
In connection with the offering, Secutor Capital received a cash finder's fee equal to 5% of the gross proceeds of the Flow-Through Unit Offering.
The Company also announces that payment of interest in the amount of $394,380, for the third quarter of 2016 pursuant to a loan agreement entered into between Noront and Resource Capital Funds V L.P. ("RCF") dated February 26, 2013 (the "Loan Agreement") has been satisfied by delivery of 1,331,414 common shares of the Company (the "Interest Shares") at an effective price of $0.2962 per Interest Share. The Interest Shares were delivered on October 11, 2016 subject to a four month hold period, expiring on February 12, 2017.
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 September 30, 2016.
After giving effect to the private placement and issuance of the Interest Shares, there are 324,315,693 common shares of the Company issued and outstanding.Noront
