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Noranda Enters into US$40M Zinc Stream Agreement with BaseCore

Transaction Details

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Fort Capital is pleased to announce that Noranda Income Fund (TSX:NIF.UN) (“Noranda”) and BaseCore Metals LP (“BaseCore”) have entered into a definitive stream agreement (the “Stream Transaction”), which represents the first stream of its kind on a smelting operation.

Noranda will sell 1.00% of zinc processed and refined at its processing facility located in Quebec (the “Processing Facility”) until the later of ten years or when 68 million pounds of zinc have been delivered. Noranda will receive ongoing payments equal to 20% of the zinc LME cash settlement price at the time of delivery. BaseCore will pay US$40 million for the zinc stream in three separate tranches.

The proceeds from the Stream Transaction will be used to fund expansion and efficiency projects that will allow Noranda to expand zinc production capacity at the Processing Facility by ~20,000 tonnes per annum and maintain its position as a leading zinc smelter in North America.

Fort Capital Partners acted as Financial Advisor to Noranda on the Stream Transaction.