Fossil,

The RCF Bridge loan is secured

http://norontresources.com/noront-closes-us15-0-million-loan-facility-with-resource-capital-fund-v/

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. The Facility will be secured by a first ranking perfected lien over all assets associated with the Company’s projects, initially excluding the Company’s interest in the Windfall Lake gold project; all shares or equity interests in subsidiaries of the Company and all intercompany debt.

------------------------------------------------------------------------------------------------

Regarding the convertible loan

The Convertible Loan may be converted into common shares of the Company at the option of RCF at a price of $0.45 cents per share at any time subsequent to the Bridge Loan maturity date and prior to December 31, 2015

===================================================

Fossil,...we need only to look at the Sirius resources example as a clue.....a buy out for 1.8 billion for a comparable eagle nest only....No chromite included. That's like $6 per share for Noront shares + a premium for the chromite.

We know that companies would NOT spend 1.35 billion on phase1/2 hydro unless a deal was known regarding infrastructure as per the recent announcement with Watay, Fortis and Res Canada

What I am trying to say is it makes NO sense to anyone on this board that RCF would not take 15 million dollars worth of .45 cent shares when the loan comes due Dec.31,2015.

But...there are those words "may be at the option of RCF". It may make perfect sense to take the shares but what if they want cash? Does Noront have the 15+ million to pay them this December..should they want cash?

So you ask why 50 million?

If I was involved in lending Noront money for the mine or I was the gov't(s) putting up 2 billion dollars of money...or if I was a rich dude wanting to buy in in a big way... I would want to make sure that every potential risk was covered.

I would tell them ...what if RCF came to you in Dec. and wanted 15 million+...they decided they don't want shares.

What if at the same time some "plotted" crap was going on making the ROF look unattractive and there was no interest from others in helping out with the 15 million.

Who would have ever believed that after Cliffs spent around 750 million on the ROF project ..that it could be sold for 25 million with open bidding???

All these things would be in my mind. What is crap is plotted....RCF demands money, Noront can't come up with it ...and RCF takes control of the company assets as payment...and Franco gets the Cliffs stuff.

Of course we don't see this happening..2 companies along with Watay FNs committed to 1.35 billion in hydro transmission lines...no groups would do this without know positive action in the ROF...We know this.

We know 15 million is nothing to Baosteel. But where is it written in contract form that they would pay to bail Noront out if RCF wanted cash??

The Franco loan is due at the end of maturity. But what if there is no money..

The amounts of money borrowed are 15+ for RCF and 27million+ interest from Franco.

If you were to de-risk the project....you make sure you have around 50 million .

Money to pay RCF should they demand money instead of shares at the end of this December and balance set aside to pay the 27 million+ interest owed to Franco when the loan matures..

=====================================================

Think of this 50 million like an pre-approved line of credit to draw against to de-risk Noront for entities putting lots of money on the line or for gov'ts that want to cover their butts when they spend 2 billion.