Dec 9, 2020

Noront Resources and Wyloo Metals enter partnership

partnership
Canada
investment
Dominic Ellis
2 min
Agreement will see Wyloo buy the beneficial equity and debt interests in Noront from Resource Capital Fund V
Agreement will see Wyloo buy the beneficial equity and debt interests in Noront from Resource Capital Fund V...

Canadian mining company Noront Resources has entered into an agreement with its new cornerstone security holder Wyloo Metals to acquire the beneficial equity and debt interests previously held by Resource Capital Fund V.

Wyloo Metals is the mining division of Tattarang, one of Austalia’s largest private investment groups. A long-term collaborator and investor supporting the discovery and development of the next generation of mines, Wyloo Metals is led by a multidisciplinary team of geologists engineers and financial professionals, according to a Noront statement.

Wyloo works closely with its stakeholders to accelerate projects through the development cycle while meeting the highest international environmental, social and governance standards, the statement adds.

“We are delighted that Wyloo Metals has chosen to acquire a cornerstone interest in Noront,” says Noront President and CEO Alan Coutts. “It’s exciting to partner with a company whose values parallel our own company principles. Wyloo makes long-term strategic investments in companies that mine responsibly, and that’s a philosophy that aligns very well with the approach Noront is taking as we develop the Ring of Fire in an environmentally responsible manner in collaboration with our First Nation partners.”

The statement explains that pursuant to a purchase agreement between Wyloo Metals and Resource Capital Fund V and Resource Capital Annex Fund V (collectively known as RCF), the parties have entered into an agreement to purchase all of RCF’s interests in Noront. 

This includes its equity interest, which represents approximately 22.5 percent of Noront’s issued and outstanding common shares, a £11.18 million convertible debenture and its 1.0 percent NSR on Noront’s Eagle’s Nest deposit.

As a result of this third-party transaction, Wyloo Metals will become a control person of Noront and will have the right to nominate two members to Noront’s Board of Directors, one of which must be independent of Wyloo Metals, the statement adds.

Head of Wyloo Metals, Luca Giacovazzi, says that the partnership with Noront presents a unique opportunity to join forces with a proven management team in the development of the Eagle’s Nest deposit and the continued exploration of the world-class Ring of Fire region. 

“This investment reflects a long-term and collaborative strategy to support the discovery and development of the next generation of mines required to meet the growing demand of critical materials needed to power the decarbonisation of the global economy,” Giacovazzi concludes.

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Apr 21, 2021

Rio Tinto’s iron ore output falls 2% year-on-year

RioTinto
ironore
Pilbara
covid-19
2 min
World's biggest iron ore producer reports lower quarterly output due to labour shortages and weather issues
Rio Tinto reported lower quarterly iron ore output as wet weather and labour shortages impacted its mine and port operations in Western Australia.
 
Above average wet weather in the mines and workforce availability disrupted maintenance during the quarter, Rio said, while Tropical Cyclone Seroja impacted operations in April, reports Reuters.

 

Iron Ore
 
Production for the quarter stood at 76.4 million tonnes, down 2% from the same period last year.
 
“You’d have to suggest that its a pretty average result. They have not delivered iron ore into a solid pricing environment,” said David Lennox at Fat Prophets in Sydney.
 
“There’s nothing that they can do about wet weather – it may be that they are going to have to live with changing environmental conditions. What will save them is the fact that they have got higher commodity prices generally, especially iron ore and copper.”
 
The world’s biggest iron ore producer shipped 77.8 million tonnes (mt) of the commodity in the quarter ended March 31, up 7% compared with 72.9 mt last year. It maintained its forecast of shipping between 325mt and 340mt of iron ore in 2021.

 

Pilbara
 
Rio has benefited from strong demand for its higher quality Pilbara blend products due to solid margins at China steelmakers as construction activity and steel demand in the first quarter eclipsed 2020 and 2019 levels.
 
China’s renewed focus on cutting steelmaking emissions will likely restrain steel exports in 2021, supporting margins globally, it said.
 
Copper production fell 16% on year ago levels after covid-19 prevention measures limited labour availability in Escondida in Chile.
 
Its Oyu Tolgoi copper shipments have been impacted by Chinese boarder restrictions due to increased cases of covid-19.
 
“We declared force majeure on shipments from 30 March and continue to work closely with authorities and our customers to manage the risk of supply chain disruptions,” it said.
 
“Rio has resumed cross-border concentrate shipments into China on 15 April however, the situation is very fluid with the covid-19 resurgence in Mongolia.”

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