NEW YORK Noront Resources Ltd. plans to use funds generated from the sale of its rights to a northern Quebec gold project to develop its Eagles Nest nickel project.
Noront sold its 25-percent stake and all other interests in the Windfall Lake high-grade gold exploration project to Eagle Hill Exploration Corp. for $5 million and 25 million freely tradable common shares of Eagle Hill, the Toronto-based company announced Aug. 15.
The sale, announced in June, ends a four-year agreement between Noront and Eagle Hill, who had shared ownership of Windfall Lake since 2009, and transfers full control of the project to Eagle Hill.
Noront will use the capital raised from the sale "to fund the development of our Eagles Nest project in the Ring of Fire (in the James Bay Lowlands in Ontario)," Noront chairman and interim chief executive officer Paul Parisotto told AMM.
The Eagles Nest project contains high-grade nickel, copper, platinum and palladium deposits.