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TORONTO, March 23 (Reuters) - Canadian miner Noront Resources Ltd said on Monday that it would buy Cliffs Natural Resources Inc's chromite assets in the northern Ontario Ring of Fire district for $20 million, financed by a loan from Franco-Nevada Corp. The deal is a boost for the district, which is has huge deposits of chromite, which is used to make stainless steel, and other metals, but little infrastructure. Mining companies have touted its potential for years, but they have yet to take any projects to construction. Franco-Nevada has agreed to loan Noront $22.5 million for seven years at an interest rate of 7 percent. The loan will cover the cost of the Cliffs assets and $2.5 million for general working capital. The royalty and streaming company will also pay Noront $3.5 million in cash, receiving royalties of 3 percent on the Black Thor project and 2 percent on all of Noront's property in the region, excluding its Eagle's Nest project. Cliffs was the biggest company invested in the Ring of Fire, but in 2013 it suspended work in the region. Hit hard by a weak steel market and problems at its Bloom Lake mine in Quebec, Cliffs' Canadian subsidiary sought creditor protection in January. Cliffs paid C$118 million ($94 million) for its Ring of Fire assets in 2009. The deal with Noront will need court approval as part of Cliffs' restructuring process. ($1 = $1.26 Canadian) (Reporting by Allison Martell; Editing by Lisa Von Ahn)
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Franco Nevada Corp.
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PRODUCER |
CODE : FNV.TO |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Franco-Nevada is a gold royalty company based in Canada. Franco-Nevada produces gold, copper, nickel, pgm, platinum, silver and uranium in Australia, in Canada, in Ghana, in Indonesia, in Mauritania, in Mexico, in South Africa and in USA, develops copper, gold, lead, molybdenum, nickel, silver and zinc in Canada, in Dominican Republic and in Greece, and holds various exploration projects in Argentina and in Australia. Its main assets in production are BALD MOUNTAIN in USA, HEMLO, HOLLISTER, ROBINSON (NEVADA) and HOLLOWAY in Canada, NORTH LANUT and MT. MURO in Indonesia, EZULWINI, MARIGOLD, MESQUITE, PANDORA JV and (MWS) BUFFELSFONTEIN TAILING PROJECT in South Africa, TASIAST in Mauritania, CERRO SAN PEDRO, PALMAREJO, GOLDSTRIKE and STILLWATER MINE in Mexico, MOUNT KEITH - OC and MOUNT KEITH - SP in Australia and AHAFO SOUTH in Ghana, its main assets in development are DEE PROJECT, TULSEQUAH CHIEF, ROSEMONT RANCH and PROSPERITY in Canada, PERAMA HILL in Greece and FALCONDO MINE in Dominican Republic and its main exploration properties are DETOUR LAKE, EDSON, WEYBURN UNIT and MIDALE UNIT in Canada, TARICORI and PINSON in Peru, PECULIAR KNOB, ADMIRAL HILL and MOOLART WELL in Australia and CALCATREU in Argentina. Franco-Nevada is listed in Canada and in United States of America. Its market capitalisation is CA$ 30.5 billions as of today (US$ 22.5 billions, € 20.3 billions). Its stock quote reached its lowest recent point on March 08, 2019 at CA$ 100.00, and its highest recent level on September 19, 2024 at CA$ 171.12. Franco-Nevada has 178 480 000 shares outstanding. |