PERTH, Australia, July 23, 2021 (GLOBE NEWSWIRE) – Wyloo Metals Pty Ltd. (“Wyloo Metals”) is pleased to provide an update regarding the $ 15 million convertible loan (the “Convertible Loan”) provided to Noront Resources Ltd. (TSXV: NO) (“Noront”).
Intent to convert loan
On December 7, 2020, Wyloo Canada Holdings Pty Ltd (“Wyloo Canada”), a wholly owned subsidiary of Wyloo Metals, entered into an agreement with Resource Capital Fund V LP (“RCF”) to acquire its interests in Noront, which include the convertible loan. The loan maturity date is September 30, 2021 and it is convertible into Noront common stock at Wyloo Metals’ option at Cdn $ 0.20 per common share. Wyloo Canada also has warrants (“Noront Warrants”) to acquire 1,774,664 common shares of Noront at an exercise price of Cdn $ 0.350 per share.
Wyloo Metals confirms that it intends to convert the convertible loan on or before the maturity date into Noront common stock, rather than seeking repayment from Noront in cash.
Wyloo Canada currently owns a total of 111,815,458 Noront common shares representing approximately 24.4% of Noront’s outstanding common shares.1. At an exchange rate of US $ 0.796 per Canadian dollar2, Wyloo Canada would acquire an additional 94,274,994 common shares of Noront upon conversion of the convertible loan. Upon conversion of the Convertible Loan, Wyloo Canada would have 206,090,452 Noront common shares, representing approximately 37.3% of Noront’s outstanding common shares. If the Noront Warrants are also fully exercised, Wyloo Canada would have 207,865,116 Noront common shares, representing approximately 37.5% of Noront’s outstanding common shares.
Update on the cash offer
As Wyloo Metals is a “insider” of Noront for the purposes of applicable securities laws, at the time it announced its intention to make a cash offer for Noront on May 25, 2021, Wyloo Metals asked the board of directors Noront to obtain a formal valuation of Noront’s common stock by an independent appraiser. Wyloo Metals is pleased to confirm that Noront has indicated that the formal valuation will be completed around July 30, 2021. Upon completion of the formal valuation, Wyloo Metals intends to send its takeover offer circular to Noront shareholders. and make all the necessary presentations before the corresponding securities regulatory authorities.
1 Following the issuance of 1,111,945 shares of interest according to Noront’s announcement dated July 20, 2021
2 As of July 22, 2021
ABOUT WYLOO METALS
Wyloo Metals is the metals and mining subsidiary of Tattarang, one of Australia’s largest private investment groups. Led by a multidisciplinary team of geologists, engineers and financial professionals, Wyloo Metals manages a diverse portfolio of exploration and development projects and fundamental interests in a number of public and private companies. Wyloo Metals seeks to work closely with all stakeholders to accelerate projects throughout the development cycle while meeting the highest international governance, environmental and social standards. See more at: www.wyloometals.com.
DISCLAIMER OF LIABILITY
Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties, including the successful completion of the Noront acquisition by Wyloo Metals. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause actual events or results to be materially different from those anticipated by such statements. Wyloo Metals makes no representations or warranties, express or implied, as to the accuracy, completeness or current status of such statements. Therefore, in no event will Wyloo Metals and its affiliated companies be liable to anyone for any decision or action taken in connection with the information and / or statements in this press release or for any related damages.
This press release is not a recommendation, a purchase offer, or a solicitation of an offer to sell Noront shares. Wyloo Metals has not accepted a purchase offer or a tender offer for Noront shares as described in this press release. Wyloo Metals will only initiate a tender offer or takeover bid for Noront shares by filing a tender offer circular with the appropriate securities regulatory authorities in Canada, which will contain the full terms and conditions of the offer, including details of how the offer can be accepted. Once filed with the applicable securities regulatory authorities in Canada, the tender offer circular and other related documentation will be available under Noront’s profile on SEDAR (www.sedar.com).
This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Issues Related to the Takeover Offer and Insider Trading Reporting, which requires a report to be filed under Noront’s profile. at SEDAR (www.sedar.com) with additional information regarding the above matters. You can obtain a copy of this report by contacting Wyloo Metals at firstname.lastname@example.org. Wyloo Metals’ address is PO Box 3155, Broadway Nedlands, WA 6009 Western Australia.
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