RE:For what its worth Wyloo bought RCF shares and loan at a discount ... meaning RCF did not see a future or a return off Noront in any near future ... if you look at the wording Wyloo used while they viewed the purchase as a CORNSTONE investment ...
Also they have no interest
WHICH INCLUDES FURTHER INVESTMENT.... they bought cheap hoping to turn a profit off Noront down the road and if I am reading this correctly ? Seems to me they got ABSOLUTELY ZERO INTEREST IN FINANCING NORONT TO MINING
Under the terms of its agreements with RCF, Wyloo Metals will purchase the 94,553,126 Noront common shares for an aggregate purchase price of US$11.5 million (C$14.8 million, or C$0.16 per share) and will purchase the convertible loan for US$15.0 million (which is the principal amount of the loan). The Noront common shares to be acquired represent approximately 22.65 per cent of the 417,512,534 currently outstanding Noront common shares. Based on the current conversion price of the loan, Wyloo Metals would acquire 96,600,000 Noront common shares upon full conversion of the loan and would, if the warrants it is to acquire were also exercised, result in Wyloo Metals holding 192,927,790 Noront common shares, representing approximately 37.4 per cent of the Noront common shares on a partially diluted basis.
As part of the proposed transaction, Noront will grant to Wyloo Metals investor rights consistent with the rights currently held by RCF (including pre-emptive rights and rights to two board nominees).
This acquisition by Wyloo Metals is for investment purposes. Wyloo Metals does not have any current plans or intentions to buy or sell further Noront shares (other than potentially exercising its loan conversion or warrant exercise rights), to solicit proxies or to otherwise participate in any significant transaction involving Noront. Wyloo Metals will review its investment on a continuing basis. Depending on various factors, it may in the future purchase or sell securities or engage in other activities relating to Noront.
Closing of the transactions is subject to customary closing conditions, including approval of the TSX Venture Exchange.
Wyloo Metals will be filing an early warning report under Noront’s profile on SEDAR, and copies of the report may be obtained at sedar.com.
The acquisitions of these securities from RCF is to be made in reliance upon the “private agreement” exemption from the formal take-over bid requirements of applicable Canadian securities legislation. The per share price to be paid by Wyloo Metals is less than the market price of the Noront common shares as determined in the manner prescribed by applicable Canadian securities legislation