Back Cliffs Closes Sale Of Chromite Assets At A Higher Price

(RTTNews) - Mining company Cliffs Natural Resources Inc (CLF) on Tuesday said it has completed the sale of its Chromite assets in Northern Ontario, Canada to Noront Resources Ltd.

Cliffs said the assets were sold under a revised purchased agreement for $27.5 million in cash, an increase of $7.5 million over the previously announced sale price of $20 million.

The transaction closed following the approval of the sale by the court under the Companies' Creditors Arrangement Act ("CCAA") proceedings in Canada. The assets are comprised of three chromite deposits and associated claims held by Cliffs subsidiaries.

The company stated that the transaction is another step in divesting interests in non-core assets and that the proceeds of the sale will be used substantially to cover costs and expenses associated with the CCAA proceeding.