Toronto, Ontario, July 21, 2009. Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture: NOT) is pleased to announce that it has entered into a property option agreement (the “Agreement”) with Eagle Hill Exploration Corporation (“Eagle Hill”) pursuant to which Eagle Hill may earn up to a 100% interest, subject to a 2% net smelter royalty, in Noront’s 100% owned Windfall Lake Property, located in Quebec, Canada (the “Property”).
Wes Hanson, Noront’s CEO stated, “Windfall Lake returned several impressive diamond drill intercepts however results from our underground development suggest that further financing and focused exploration work is necessary to determine the resource potential at Windfall Lake. Noront’s management believes that at present, its funds and shareholders are better served by remaining focused on the company’s Eagle One Deposit.”
Terms and Conditions of Acquisition:
Under the terms of the Agreement, Eagle Hill will, subject to a financing condition and regulatory approval, be entitled to earn up to a 100% interest in the Property, in the following transactions:
- a 10% interest upon payment of a consideration payments of CDN$600,000 and incurring expenditures of CDN$500,000 on the Property;
- a further 41% interest upon incurring CDN$2,000,000 in expenditures on the Property; and
- a further 24% interest upon incurring CDN$2,500,000 in expenditures on the Property and consideration payment of $400,000.
The Company will retain a 25% carried interest to the earlier of completion of a bankable feasibility study (the “BFS”) or a commitment to take the property into commercial production after which the Company would be responsible for its working interest of additional expenditures.
If Eagle Hill does not complete a BFS or commit to take the project to production, then the Company will have the option to purchase back the 75% of the Property, within the applicable period from Eagle Hill.
At the time of completed BFS or the project has commenced production, the Company will have an option to either:
- a. convert all of its interest for a 2% net smelter royalty (“NSR”); or
- b. retain a 25% interest in the Windfall Lake Property and be responsible for its pro rata costs to go into production and will receive compensation for its costs to date from production after certain expenditures are repaid.
Noront Resources is focused on its significant and multiple, high-grade nickel-copper-platinum-palladium, chromite and vanadium discoveries in an area known as the “Ring of Fire”, an emerging multi-metals district located in the James Bay Lowlands of Ontario, Canada. Noront is the dominant land holder at the Ring of Fire and continues to delineate and prove up its discoveries with NI 43-101 technical and economic reports and an aggressive and well financed drill plan for 2009. All material information on Noront can be found on the Company’s website at www.norontresources.com or at SEDAR at www.sedar.com
For further information please contact Joanne Jobin, Vice President Corporate Communications at (416) 367-1444 ext 126, or visit Noront’s website at: http://www.norontresources.com.
ON BEHALF OF THE BOARD OF DIRECTORS
“Wesley (Wes) C. Hanson
President & Chief Executive Officer”