$400 million

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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djje

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$400 million

posted on Mar 11, 2013 08:04AM

There has been a lot of discussion about the $400 million Noront intends to raise (if not already raised) after infrastructure is announced, but i've yet to hear anyone mention the significance of what it signals.

For starters, $400 million = approximately $1.60 a share............MINIMUM.

But raising capital isn't selling the whole company like my example above shows. So is it a 50/50 deal with an existing major, or a new one. If so, how much are we worth? Clearly much more than this figure. The closer we get to production the more we will get. I've been told time and again that many (and I don't mean retail) are simply waiting on the government to step in. It appears we are extremely close to this.

This ability to raise funds is bringing to light the value of our assets. Whoever funds us, will be looking for profit as well, which means we are worth much more than $400 million. What everyone really needs to understand is that this very thing proves what we've all been saying. Clearly we are worth many multiples of todays share price. Quite honestly, were likely sitting at these levels because of it. It is already priced in. All i'm trying to point out is that if the whole damn thing was sold for $400 million we would get around $1.60 a share.........really think about this folks. Has management just put a price on a portion of the company, or will they sell us for $1.60ish a share for all? If there was ever a time to average down, I would do so soon. This is not investment advice, and I have never suggested anyone to buy, but IMHO if your average is above this, it might be worth another dip if funds permit. The significance of the $400 million is just that, it puts an "at worst case scenario" price tag on this puppy for shareholders. No one puts up this type of money without expecting a very healthy return on it.

As for road or rail, it doesn't matter much to noront, at least for a few years. The road will be suffice for Noronts Nickel. This is high grade stuff that could be taken out by truck. The chrome is a different story. I think we'll see road to start, then rail in the future. Things are about to get interesting.