Noront Resources (TSX-V: NOT) signed a memorandum of understanding with the Aroland First Nation to advance the planning process for the development of the Eagle's Nest nickel-copper-platinum-palladium deposit in the Ring of Fire, northern Ontario.
In a media statement, both parties said that the MoU contemplates Aroland becoming a shareholder of Noront. The company will issue 150,000 shares to the First Nation.
The deal also entails the establishment of an ongoing working and communication protocol and the initiation of a dialogue regarding economic development opportunities.
Noront previously signed an Exploration and Project Advancement Agreement with the Marten Falls First Nation"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," Chief Dorothy Towedo said in the press brief. "Our First Nation is encouraged by Noront's inclusive approach to advancing mutually beneficial opportunities."
The Eagle's Nest mine is expected to produce 3,000 tonnes of ore per day, which will be mined by underground methods and processed to deliver 150,000 to 250,000 tonnes of nickel-bearing concentrate per year.
The mine should reach commercial production three years after permits are received. The anticipated mine life is of 11 years with the potential for nine additional years.
At present, Eagle's Nest has over 20 million tonnes of measured, indicated and inferred resources containing high-grade nickel mineralization with significant copper, palladium and platinum content.