From the news release

The high lighted parts are of interest

May. 2, 2011

Toronto, Ontario, May 2, 2011. Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture: NOT) is pleased to announce that it has agreed on definitive terms in connection with a proposed offering (“the Offering”) with Baosteel Resources International Co., Ltd.

Under the terms of the Offering, Noront will issue such number of shares as is equal to 9.9% of the total issued and outstanding common shares of Noront at the time of closing at a price of $0.86 per Unit. Each Unit consists of one common share and one half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant shall be exercisable to acquire one common share of Noront at an exercise price equal to $1.16 for a period of 24 months following the closing date. Net proceeds of the common share portion are anticipated to be approximately C$ 17.4 million. Exercise of the Warrants would increase Baosteel’s equity ownership interest in Noront to 14.15%, with aggregate proceeds to Noront of approximately C$11.7 million.

The Offering provides Baosteel with the right to nominate one individual to the Noront Board of Directors, a right to increase their ownership in Noront to 19.9% for a one year period commencing on April 18, 2012 and a standstill provision which expires on April 18, 2013.

Here's my take. The price has had a lid placed on it by Baosteel ( or agent acting on their behalf ). Do you think there is a possibility that after April 18th we'll see the asks pulled to let the price rise to the"strike price" of $1.16. Wes get's his money, Baosteel bumps up their position in Noront to 14.15%.

It seems the least painful way to get money. Am I wrong? Feel free to shoot holes through this theory.

This is my "Pelican Brief"

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