Noront Resources Ltd completes ‘Ring of Fire’ acquisition after winning court approval

Peter Koven | April 28, 2015 4:47 PM ET
More from Peter Koven | @peterkoven

http://business.financialpost.com/news/mining/noront-resources-ltd-completes-ring-of-fire-acquisition-after-winning-court-approval

Noront Resources Ltd. has completed its acquisition of chromite assets in Northern Ontario’s “Ring of Fire” just days after the transaction looked like it might fall apart.

The Toronto-based junior miner announced Tuesday that it has bought the assets from Cliffs Natural Resources Inc. for US$27.5 million. That is US$7.5 million higher than the price the two companies agreed on in March. But Noront was forced to raise its bid after a last-minute

Al Zaibak tried to block Noront’s acquisition in court, saying the bidding process was unfair and he was just used as a “stalking horse” to get a higher offer from Noront. Four First Nations groups also opposed the deal. However, the Quebec Superior Court ruled in favour of the Noront transaction on Monday. It closed Tuesday morning.

“We feel US$27.5 million is an attractive price for the acquisition of these strategic assets,” Noront chief executive Alan Coutts said in a statement.

The deal makes Noront the dominant landholder in the “Ring of Fire,” a massive mineral belt that has become a focal point of the Ontario government’s Northern development plans. rival offer came in from an entrepreneur named Mohammad Al Zaibak.