Loan automatically rolls into an 8% convertible loan due Dec. 31, 2015
By Devika Patel
Knoxville, Tenn., Feb. 26 - Noront Resources Ltd. said it arranged a $15 million loan facility with Resource Capital Fund V LP.
The 10% facility matures on Feb. 25, 2014, and automatically rolls into an 8% convertible loan due on Dec. 31, 2015 if the facility is not repaid prior to its maturity.
The Convertible Loan may be converted into common shares at C$0.45 per share at any time after the facility's maturity date and prior to Dec. 31, 2015. The conversion price is a 73.08% premium to the Feb. 25 closing share price of C$0.26.
Proceeds will be used for development of the company's Eagle's Nest nickel, copper, platinum, palladium project, working capital and corporate requirements.
Noront is a nickel, copper, platinum and palladium exploration company based in Toronto.
| Issuer: | Noront Resources Ltd.
|
| Issue: | Loan facility
|
| Amount: | $15 million
|
| Maturity: | Feb. 25, 2014
|
| Coupon: | 10%
|
| Warrants: | No
|
| Investor: | Resource Capital Fund V LP
|
| Settlement date: | Feb. 26
|
| Stock symbol: | TSX Venture: NOT
|
| Stock price: | C$0.26 at close Feb. 25
|
| Market capitalization: | C$58.73 million
|
|
|
| Convertible loan
|
| Maturity: | Dec. 31, 2015
|
| Coupon: | 8%
|
| Conversion price: | C$0.45
|
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