Shares in Noront Resources (CVE:NOT) ticked up Thursday in Toronto as it revealed it had agreed with the Aroland First Nation to advance planning to develop its Eagle’s Nest nickel-copper-platinum-palladium deposit.
The project lies in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.
The signing of the MOU (memorandum of understanding) will formalize the relationship between the parties and starts a dialogue regarding mutually beneficial economic development opportunities, the company said. It also means Aroland will become a shareholder, receiving 150,000 shares in Noront, subject to TSX venture approval.
The traditional lands of the Aroland First Nation lie at the south end of the proposed North-South all-season road to the region where the road infrastructure will connect with established railroads.
"Aroland First Nation is advancing responsible mineral development in collaboration with other area First Nations in what we call the ‘Mining Hub’ that is growing quickly between the Geraldton-Beardmore Greenstone belt and the Ring of Fire," said Chief Dorothy Towedo of Aroland First Nation.
"Our First Nation is encouraged by Noront’s inclusive approach to advancing mutually beneficial opportunities with First Nations. Early dialogue is key."
Noront's aim is to establish commercial production at flasgiop Eagle’s Nest three years following permitting, and to use the estimated $150 to $200 million in annual cash flow to develop the firm's other chromite assets and fund future exploration in the Ring of Fire in partnership with local First Nations, contractors, suppliers and communities of Northern Ontario.
Noront shares added over 2% to $0.24 each on the day.
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