Australia’s Wyloo Metals Pty Ltd. has entered into a definitive agreement to become a cornerstone investor in Noront Resources Ltd. by acquiring the interests controlled by Resource Capital Fund and its affiliates (RCF). The deal is Wyloo Metals’ second Canadian investment, and follows several similar strategic investments aimed at supporting the discovery and development of critical commodities.

Noront is a Canadian listed mining company with several assets, including the high-grade Eagle’s Nest nickel project in the Ring of Fire, an emerging multi-metals region located in the James Bay Lowlands of Northern Ontario. Eagle’s Nest is the largest high-grade nickel discovery in Canada since Voisey’s Bay and is anticipated to have an initial mine life of 11 years, with the potential for an additional nine years. This excludes the development of the adjacent chromite resources, which presents a further development opportunity. Once developed, the Ring of Fire has the potential to generate significant business and employment benefits for Ontario’s northwestern region.

Under the terms of its agreements with RCF, Wyloo Metals will purchase the more than 95.5 million Noront common shares for $11.5 million and it will also purchase a convertible loan for $15 million. The Noront common shares to be acquired represent approximately 22.65% of the more than 417.5 million currently outstanding Noront common shares. Based on the current conversion price of the loan, Wyloo Metals would acquire 96.6 million Noront common shares upon full conversion of the loan and would, if the warrants it is to acquire were also exercised, result in Wyloo Metals holding nearly 193 million Noront common shares, representing approximately 37.4% of the Noront common shares on a partially diluted basis.

Closing of the transactions is subject to customary closing conditions, including approval of the TSX Venture Exchange.

Head of Wyloo Metals Luca Giacovazzi said 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 decarbonization of the global economy,” Giacovazzi said.

Noront President and CEO Alan Coutts said, “They are known for making long-term, strategic investments in companies that mine responsibly, and that is a philosophy that aligns very well with the approach we are taking as we develop the Ring of Fire in an environmentally responsible manner in collaboration with our First Nation partners.”