Noront Resources and Wyloo Metals enter partnership
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.