TSX-V-listed Noront Resources has secured a property in Sault Ste Marie, Ontario, to build and operate a ferrochrome production facility to service its chromite deposits in the emerging metals camp known as the Ring of Fire.
The company this month entered into a five-year option agreement to enter into a 99-year lease for a parcel of land next to primary steel producer Algoma Steel’s mill.
The parties plan to repurpose the location with a view to sharing infrastructure.
On Friday, Noront issued Algoma 750 000 common shares and 750 000 warrants to purchase common shares as consideration for entering a term sheet.
Each whole warrant entitles Algoma to purchase one common share at C$0.26 a share on or before September 11, 2024. The common shares will be subject to a statutory hold period of four months plus one day from the date of issuance being January 27, 2020.
Noront is developing the Eagle’s Nest nickel, copper, platinum and palladium deposit and the Blackbird, Black Thor, and Big Daddy chromite deposits in the James Bay Lowlands.
The company also entered into an agreement with multinational engineering firm Hatch to perform engineering and project support services for the Eagle’s Nest and Ring of Fire chrome projects as part of a master services agreement.
In terms of this collaboration, Hatch will participate as an equity partner with Noront, and form an integrated project management and engineering team to manage development and execution of projects in the Ring of Fire.
The Algoma and Hatch agreements mark another step towards a larger goal of Noront to develop the Ring of Fire in a partnership with First Nations, contractors, suppliers and the communities of Northern Ontario.
The TSX-V-listed company previously signed agreements with Marten Falls First Nation and Aroland First Nation, which made both communities shareholders, established ongoing working and communications protocols and created a dialogue regarding mutually beneficial economic development opportunities.