Andrew Forrest is extending his mining footprint to Canada as he prepares to become an investor in Noront Resources, owner of the Eagle’s Nest nickel project in Ontario’s Ring of Fire region.
Eagle’s Nest is the largest high-grade nickel discovery in Canada since Voisey’s Bay and has an initial mine life of 11 years, with the potential to extend by a further nine years.
The acquisition will be done through Wyloo Metals, which falls under the ownership of Forrest’s private investment arm Tattarang.
Wyloo will complete the deal by purchasing 94.5 million Noront shares for $US11.5 million ($15.52 million), confirming that it does not have further intentions to buy or sell any more Noront shares.
Head of Wyloo Metals Luca Giacovazzi said the partnership with Noront presented a unique opportunity to develop the Eagle’s Nest deposit and continue exploring within the Ring of Fire region.
“The investment reflects a long-term and collaborative strategy to support the discovery and development of the next generation mines required to meet the growing demand of critical materials needed to power the decarbonisation of the global economy,” Giacovazzi said.
Noront president and chief executive Alan Coutts added that Wyloo’s approach aligned with its own to develop the Ring of Fire in an environmentally responsible manner and in collaboration with its First Nation partners.
“We’re extremely pleased that Wyloo Metals has chosen to make a cornerstone investment in Noront,” Coutts said.
“They are known for making long-term, strategic investments in companies that mine responsibly and that is a philosophy that aligns very well with the approach we are taking.”
Eagle’s Nest, which is currently in permitting phase, will be Wyloo’s second Canadian investment, having also invested in Canadian based resources sector financier Queen’s Road Capital in February this year.