TORONTO, ONTARIO--(Marketwire - June 6, 2008) - Noront Resources Ltd. ("Noront") (TSX VENTURE:NOT) is pleased to report that it is continuing with its drilling and other exploration activities in the McFaulds Lake area of northern Ontario in the James Bay Lowlands and has also been furthering its corporate development objectives. Accordingly, Noront wishes to present the following report on its corporate activities.
Further to its appointment of JPMorgan Securities Inc. and IBK Capital Corp. as its financial advisors last year, Noront is continuing to identify companies who may be interested in becoming a strategic partner with Noront to assist it in developing its Double Eagle project. Noront is currently in preliminary discussions with a number of such candidates. There can be no assurance that such discussions will continue or will result in the successful conclusion of a transaction involving Noront and any other person.
Noront has also been assigned by WSR Gold Inc. ("WSR"), the option to earn a 35% interest in the property located in the James Bay lowlands (the "Golden Valley Property") owned by Golden Valley Mines Ltd. ("Golden Valley"). WSR has entered into a letter of intent with Golden Valley whereby it has the option to earn a 70% interest in the Golden Valley Property (the "Option"), and Noront can earn half of WSR's interest in the Golden Valley Property as further described below.
In order to acquire its 35% interests in the Property, Noront will be required to make payments to Golden Valley totaling $175,000 (or $350,000 in the aggregate with the payments from WSR), payable in cash and/or by the issuance of common shares of WSR (and Noront) upon the later of the execution of a definitive option agreement, or the receipt of approval from the TSX Venture Exchange. The number of shares, if any, to be issued by Noront (and WSR) as consideration for the Option will be equal to the dollar amount of the total consideration that Golden Valley elects to receive in shares divided by the ten day volume weighted average price of such shares for the ten trading day period immediately preceding the date on which a press release is issued announcing a definitive option agreement amongst WSR, Noront and Golden Valley. In addition to these payments, WSR and Noront will also be required to incur aggregate exploration expenditures on the Property of at least $5,000,000 over a three year period (of which $1,000,000 must be expended in the first year).
Upon WSR and Noront earning their collective 70% interest in the Property, WSR, Noront and Golden Valley shall enter into a joint venture agreement. The Joint Venture Agreement will require WSR and Noront to fund all project costs up to the start of commercial production from the Property. Following the commencement of commercial production, any cash flow after payment of operating expenses and third party financing costs will be distributed to Noront and WSR until such time as the aggregate of their project costs, including interest, up to the commencement of commercial production have been repaid, following which such cash flow shall be distributed to the parties on a pro rata basis.
The transaction remains subject to the approval of the TSX Venture Exchange and execution of the definitive option agreement.
In order to continue the development of Noront's assets and strategically enhance the value of the company to shareholders, the Board of Directors as well as Management of Noront has, over recent months, shouldered increasing responsibilities commensurate with the growth of the company. As such, the board of directors of Noront has been working to identify persons who could add their talents to the board of directors. In that regard, Noront is pleased to welcome Mr. Paul Parisotto as an independent member of the Board of Directors.
Mr. Parisotto is currently President and Chief Executive Officer of Arizona Star Resource Corp., which was acquired by Barrick Gold Corporation for $773 million and Blacksands Petroleum, Inc., a publicly traded US company focused on the acquisition, exploration and development of conventional and unconventional oil in western Canada. Blacksands owns a 75% interest in Access Energy, a private company of which Mr. Parisotto is also President and Chief Executive officer.
Mr. Parisotto has been President of Coniston Investment Corp. from October 1999 to the present. Coniston is a private firm specializing in providing investment banking services including the raising of equity and debt and providing mergers and acquisitions advisory services to small market capitalization companies which are either private or public. Prior to these current responsibilities, Mr. Parisotto was Manager, Original Listings at The Toronto Stock Exchange from 1985 to 1994. During his tenure at the TSE he was involved in the listing process for over 250 companies. He has also been Senior Vice-President, Corporate Finance for Marleau, Lemire Securities Inc. from January 1995 to January 1998 and was Vice-President and Director, Investment Banking for HSBC Securities (Canada) Inc. from March 1998 to June 1999. He was also director of Nevada Pacific Gold Ltd., a public company acquired by US Gold Inc. in a share exchange take over bid for over $100 million.
As well, the Board of Directors of Noront has been working to restructure the management of Noront as follows, to better reflect the duties being performed by existing management:
Mr. Richard Nemis, LL. B. continues in his role as President and Chief Executive Officer of Noront, an office he has held since 1980. Mr. Nemis was also president and CEO of Central Crude Ltd. until its merger to become River Gold Mines Inc. During the period in which Mr. Nemis was its President, Central Crude and instrumental in the development of two gold deposits, namely the Eagle River deposit near Mishibishu Lake (south of Hemlo, Ontario), currently operated by River Gold Mines Ltd. (changed name to Wesdome Gold Mines Ltd.), and the Moss Lake gold deposit near Thunder Bay area, Ontario.
Mr. Nemis during his career worked with Noble Harbinson, and was associated with a number of the Harbinson group of companies, including, Consolidated Durham Mines Ltd., Dominion Explorers Ltd., and Noble Mines and Oils. Mr. Nemis currently is a senior member and part owner of the largest structural steel firm in northern Ontario, Noront Steel, operating since 1946 headquartered in Sudbury, Ontario. In addition to Noront, Mr. Nemis is also a director of the following junior resource companies: Tribute Minerals Inc. and Goldeye Explorations Limited.
Mr. John Harvey, (P.Eng.), formerly Executive Vice President of Noront, has been appointed Chief Operating Officer of Noront.
Mr. Harvey worked with Noranda Inc. from the early 1960s and was President of Noranda Exploration from 1982 until his early retirement in 1994. He was also President of Hemlo Gold Mines from 1989 until 1992. Before Noranda, Mr. Harvey was VP - Exploration for Mattagami Lake Mines which merged with Noranda in 1982.
Mr. Harvey is actively involved with the McFaulds Lake Base Metal Camp through his affiliation with Noront Resources Ltd., as well as a board member of the following Ring of Fire companies; Tribute Minerals Inc., Canadian Ore Bodies Inc., Freewest Resources Canada Inc. and GoldEye Explorations Ltd.
Mr. Neil D. Novak, (P.Geo.), originally joined the Board of Noront in 2001 and was appointed VP Exploration in November 2007. In recognition of his long-standing relationship with Aboriginal peoples throughout his career, Neil Novak has been appointed Vice-President Corporate and Aboriginal Affairs for Noront. Mr. Novak's professional experience has spanned exploration projects in uranium, gold, diamonds and other precious metals, as well as base metals.
Mr. Novak started his career as project geologist for the Canadian operations of Australian based uranium explorer Pancontinental Mining Ltd. between 1977 and 1983. In 1983 he left Pancontinental and formed a private consulting company, Nominex Ltd., and as managing director of Nominex, Mr. Novak became involved with and managed various North American and International exploration assignments, including base metal and diamond projects in the James Bay Lowlands of Northern Ontario, in the area now known as the "Ring of Fire". Mr. Novak helped form (in 1992) and eventually became an active board member and senior officer of Spider Resources Inc., in 1995 and remained as such through to early 1999. Neil was re-elected to the Board of Spider in September 1999, and was appointed President and CEO of Spider in June 2005.
In addition to being a board member of Noront and Spider, Mr. Novak is a member of the board of directors of other public companies including Simberi Mining Corporation, and Cadillac Ventures Inc.
David Graham, (B.Sc.), joined the board of Noront in December 2006, and has been appointed Vice-President, Special Projects for Noront. In 1986 Mr. Graham became President of R. Bruce Graham and Associates Ltd. a mining consulting firm that has served the mineral industry since 1956.
Mr. Graham has over twenty five years of experience in the industry and has served as a director and manager of a number of private and public natural resource and mining concerns. His relevant experience has been in the fields of base and precious metals, uranium and industrial minerals and materials. Mr. Graham has worked in Canada, the United States, Scandinavia and Africa.
In addition to the foregoing appointments, Noront is currently in discussions with certain individuals to add to the management team of the company, and expects to be in a position to announce additional appointments shortly.
Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 129,493,883 shares issued to date.
Investors are invited to visit Noront's IR Hub at http://www.agoracom.com/IR/Noront where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to NOT@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
ON BEHALF OF THE BOARD OF DIRECTORS:
R. Nemis, President and Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
Noront Resources Ltd.
President and Chief Executive Officer
(416) 367-5444 (FAX)