Wyloo Metals confirms its intention to convert loan

PERTH, Australia, July 23, 2021 (GLOBE NEWSWIRE) -- Wyloo Metals Pty Ltd. (“Wyloo Metals”) is pleased to provide an update in relation to the US$15 million convertible loan (the “Convertible Loan”) provided to Noront Resources Ltd. (TSXV:NOT) (“Noront”).

Intention 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 L.P. (“RCF”) to acquire its interests in Noront, including the Convertible Loan. The maturity date of the loan is September 30, 2021 and it is convertible into common shares of Noront at the option of Wyloo Metals at Cdn$0.20 per common share. Wyloo Canada also holds 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 at or before the maturity date into common shares of Noront, rather than seek repayment from Noront in cash.

Wyloo Canada currently holds an aggregate of 111,815,458 common shares of Noront representing approximately 24.4% of the outstanding common shares of Noront1. At an exchange rate of 0.796 US Dollars 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 hold 206,090,452 common shares of Noront, representing approximately 37.3% of the outstanding common shares of Noront. If the Noront Warrants are also fully exercised, Wyloo Canada would hold 207,865,116 common shares of Noront, representing approximately 37.5% of the outstanding common shares of Noront.

Update on all-cash offer

As Wyloo Metals is an “insider” of Noront for purposes of applicable securities laws, at the time it announced its intention to make an all-cash offer for Noront on May 25, 2021, Wyloo Metals requested the board of directors of Noront to obtain a formal valuation of the Noront common shares by an independent valuator. Wyloo Metals is pleased to confirm that Noront has indicated the formal valuation will be completed on or about July 30, 2021. Following completion of the formal valuation, Wyloo Metals intends to send its take-over bid circular to the shareholders of Noront and to make all necessary filings with the appropriate securities regulatory authorities.

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1 Following issuance of 1,111,945 interest shares as per Noront’s announcement dated July 20, 2021
2 At 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 cornerstone interests in a number of public and private companies. Wyloo Metals seeks to work closely with all stakeholders to accelerate projects through the development cycle while meeting the highest international environmental, social and governance standards. See more at: www.wyloometals.com.