Cliffs Natural Resources sells chromite assets to Noront Resources
Cleveland-based Cliffs says Noront Resources is paying $20 million for chromite deposits and claims
Cliffs Natural Resources says it has struck a deal to sell its chromite assets in the Ring of Fire mineral region in Ontario's remote far north.
The Cleveland-based company said Monday it had entered into a definitive agreement with Noront Resources to purchase its chromite deposits and associated claims for $20 million.
Cliffs has been moving away from its investments in the Ring of Fire mining region about 500 kilometres north-east of Thunder Bay — which has yet to be developed.
Cliffs said the sale in the Ring of Fire is part of a strategy to divest its non-core assets and focus on its core business of supplying iron ore pellets to the North American steel industry.
The company described Noront as "an experienced mining company with a strategic interest in the Ring of Fire region."
Noront is expected to hold roughly 65 per cent — 80,000 hectares — of the Ring of Fire mining development at the close of the deal, according to a company press release. The acquisition includes 100 per cent interest in the Black Thor deposit and Black Label deposit, as well as 80 per cent ownership of the McFauld's Lake copper zinc resource.