The sale involved three chromite deposits and associated claims in the Ring of Fire mining district in Ontario, Canada, including a 100% interest in the Black Thor chromite deposit; a 100% interest in the Black Label chromite deposit; and, a 70% interest in the Big Daddy chromite deposit.
The transaction has been closed upon Noront Resources sale approval by the court under the Companies’ Creditors Arrangement Act (CCAA) proceedings in Canada.
The deal also involved purchase of approximately 103 claims which are owned by CCOI and CCFNI.
Noront President and CEO Alan Coutts said: "We feel $27.5 million is an attractive price for the acquisition of these strategic assets, which alongside our Eagle’s Nest nickel-copper-platinum group element deposit and our Blackbird chromite deposit will allow us to further our vision of becoming the leading resource company in the Ring of Fire.
"Our next step is to have meaningful dialogue with the local First Nations and government regarding the development of these chromite assets which represent a generational opportunity."
With the acquisition, Noront owns a total of 360 mining claims and roughly 65% (80,000ha) of the Ring of Fire which is located 500km northeast of Thunder Bay.
The sale is a part of Cliffs Natural Resources’ efforts to divest interests in non-core assets and the proceeds will be used to cover costs associated with the CCAA proceeding.
