Noront Announces Debt Extension and Royalty Sale and Provides Additional Updates

TORONTO, Dec. 23, 2019 (GLOBE NEWSWIRE) -- Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture: NOT) has extended the terms of its current debt facilities with Franco-Nevada Corporation ("Franco-Nevada") and Resource Capital Fund V L.P. ("RCF V").  The Company’s loan with Franco-Nevada has been extended to September 30, 2022 and the maturity of its convertible debenture with RCF V has been extended to September 30, 2021.  In addition, Noront has granted a 1% gross revenue royalty on the Eagle’s Nest Nickel-Copper-PGM deposit for C$5.0 million to Franco-Nevada.

“Our largest financial partners have extended the terms of their existing support and Franco-Nevada has increased its investment in Noront,” said Alan Coutts, President and CEO of Noront Resources. “We appreciate this vote of confidence and are fortunate to have many supportive stakeholders who share our vision of developing the Ring of Fire in a responsible manner with local communities, for the benefit of generations to come.”

Amended Loan Agreements

Franco-Nevada Loan Extension
In 2015, Noront Muketei Minerals Ltd. (100% owned subsidiary of Noront) entered into an amended and restated loan agreement (the “Loan Agreement”) through which Franco-Nevada loaned Noront US$25 million for a term of five-years at an interest rate of 7% per annum, with all interest accrued and payable at the end of the term. The loan proceeds were used to finance the acquisition of the Cliff’s Natural Resources Chromite Properties in the Ring of Fire (the "Cliffs Transaction").  This loan is secured by the assets acquired in the Cliffs Transaction and was to be repayable on April 30, 2020.  Pursuant to an amending agreement entered into on the date hereof between Noront and Franco-Nevada, the Loan Agreement has been extended under substantially the same terms and conditions until September 30, 2022.

Royalty
The Company has granted Franco-Nevada a 1% gross revenue royalty on the Eagles’ Nest Nickel-Copper-PGM deposit for C$5.0 million.   The proceeds from the sale of the royalty will be used to advance Noront’s Eagle’s Nest Project, the Chromite Projects and for general working capital purposes.

Resource Capital Convertible Debenture
Noront also entered into a ninth amending agreement dated December 23, 2019 (the “Ninth Amending Agreement”) with its largest shareholder, RCF V to, among other things, extend the term of its existing US$15 million convertible debenture (the “Convertible Debenture”). The maturity date of the Convertible Debenture has been extended to September 30, 2021. RCF will continue to accept all interest payments in common shares of the Company, subject to the approval of the TSX Venture Exchange (the “TSXV”), with interest paid quarterly in arrears at the same rate of  8% per annum. The Convertible Debenture continues to be convertible into common shares of the Company at the option of RCF V, with the conversion price having been set at C$0.20 cents per common share (previously C$0.34 cents per common share), at any time prior to the maturity date. All other material terms and conditions of the Convertible Debenture remain the same.