08/12/2020 - 15:34

Forrest’s Tattarang in second Canadian deal

08/12/2020 - 15:34

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Andrew Forrest's Tattarang is set to invest more than $15 million in Toronto-listed Noront Resources.

Andrew Forrest's Tattarang will invest $15.5 million in Canadian company Noront Resources. Photo: Gabriel Oliveira

Andrew Forrest's Tattarang is set to invest more than $15 million in Toronto-listed Noront Resources.

The deal is being made through Tattarang's Wyloo Metals (formerly Squadron Resources), which will emerge with close to a 37 per cent stake in Noront after striking an agreement with Resource Capital Funds.

It marks the second Canadian investment for Wyloo, which earlier this year raised its stake in Queen’s Road Capital by $C10.5 million.

Nedlands-based Wyloo will buy nearly 23 per cent of Noront’s shares for $US11.5 million ($15.5 million) along with a convertible loan for $US15 million maturing in September 2021.

Wyloo will also be granted a 1 per cent net smelter return royalty over Noront’s Eagle’s Nest deposit, situated in Northern Ontario’s multi-metals Ring of Fire region.

Eagle’s Nest is one of the largest high-grade nickel discoveries in the country, Tattarang says.

The mine is expected to have an initial 11-year life with potential for a further nine years – excluding the development of adjacent chromite resources, which Tattarang says is a further development opportunity.

Head of Wyloo Metals, Luca Giacovazzi, said Ring of Fire was a world-class region.

“This investment reflects a long-term and collaborative strategy to support the discovery and development of the next generation of mines required to meet the growing demand of critical materials needed to power the decarbonisation of the global economy,” he said.

The deal comes five days after Mr Forrest generated $2.7 billion in one day from his Pilbara iron ore assets, when the commodity’s price surged to $US136 per tonne.

The iron ore price recently hit a fresh high of about $US145/t.

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