Following the release of its Feasibility Study, the Financial Post reported an interview with Noront Resource’s (TSXV:NOT) CEO, Wes Hanson, regarding the company’s Eagle Nest Property, a nickel-PGM project in northern Ontario’s Ring of Fire.
Resource Wire asked Wes : Are you working towards offtake contracts?
WH: That may be one of the things that we’ll have to give up in order to secure project financing, and it’s one option available to us. Again, it is a negotiation that we have yet to have. Baosteel is a logical partner for us. They are one of the largest steel manufacturers in the world and one of the largest producers of stainless steel. They have direct demand for both chromite and nickel, so a joint-venture deal whereby they would become a partner in the project in exchange for financing construction of the project and an offtake would be kind of a deal that would make sense.
So we would give up a percentage interest in the actual asset itself and a percentage of the total offtake or total production in the form of an offtake agreement, and they would provide us with funding and access to perhaps Chinese development banks, which will allow us to build the project. That is one option available to us, for sure.