I was surprised with the news release today. I've had lots and lots of loans in my life. This Noront-RCF one makes no sense to me.

We see in the case of Noront's loan with RCF a closing date of Feb.25, 2013 ...a one year loan maturing Feb.24, 2014.

You are told interest is paid quarterly. Would you not expect the 1st quarter to be May 25?? .....since the close date was Feb.25??? So ...based on the terms..your brain would say RCF would be paid in shares based on the weighted Average Share price 20 days prior to May 25. So...this would be May 5....

Oh ...but ..hang on...May 2...is the Ontario Budget...um...May 5...probably not good for RCF in the maximization of cheap shares.....

So..we are going based on calender quarters????

So ..let me get this staight. Let's say the loan closed March 14, 2013 as an example.

Your brain would say the quarterly interest payment would be due 3 months from now ..(12 months divided by 4= 3 months?? The quarterly payment would be due Mid June?? Right??

But no. ...Let's make it quarterly payments based on a calendar year. So...under the Noront/RCF wierd structure.....Noront would hand over shares at the end of March...oh but......at a weighted average price 20 days BEFORE the interest date....meaning...a share price based on March 8?????1 week before the close date of the loan.???

I have never in my life seen a loan arrangement like this. If the loan is for a year and the interest is charged quarterly it has been from the date of the loan start date.

A nice favor was done for RCF in this very "special" arrangement.

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2013) - Noront Resources Ltd. ("Noront" or the "Company") (TSX VENTURE:NOT) is pleased to announce that it has entered into a loan facility with Resource Capital Fund V L.P. ("RCF") in the aggregate principal amount of US$15.0 million (the "Facility"). The Facility is a one year bridge loan (the "Bridge Loan") which matures on February 25th, 2014 and automatically rolls into a convertible loan (the "Convertible Loan") with a maturity date of December 31, 2015, if the Facility is not repaid prior to the Bridge Loan maturity date. The proceeds from the Facility will be used to further the development of the Company's advanced stage Eagle's Nest nickel, copper, platinum, palladium project; for working capital and for corporate requirements.

The Facility will bear interest at 10% per annum during the Bridge Loan period and at 8% per annum during the Convertible Loan period. Interest will be paid quarterly, in arrears, in common shares of the Company based on the volume weighted average trading price of the Company's common shares during the 20 days prior to the date of each interest period determination, or at RCF's option, in cash