Toronto-based Canadian miner Noront Resources has announced that it has reached a private placement deal to issue shares to Baosteel Resources International Co. Ltd., part of Shanghai-based Chinese steel giant Baosteel Group.
The share and warrant units will be sold at 86 Canadian cents each, with the share sale raising about C$17.4 million (RMB 120 million or US$18.4million) and giving Baosteel a 9.9 percent stake in Noront.
Exercise of the warrants would increase Baosteel's equity ownership to 14.15 percent, with another C$11.7 million (RMB 79.7 million or US$12.3 million) going to the Canadian miner.
Noront holds mineral title to the largest area in the Ring of Fire, an emerging multi-metals district in the James Bay Lowlands of northern Ontario, Canada.