Forrest’s Wyloo sets sights on Canadian nickel developer Noront
Australian mining billionaire Andrew Forrest’s Wyloo Metals on Tuesday announced that it intended to make an offer for Noront Resources, which would value the Canadian nickel project developer at C$133-million.
Wyloo would acquire all the outstanding shares of Noront that it did not already own at C$0.315 in cash, which it pointed out was a 29% premium to the volume-weighted average trading price of Noront shares on the TSX-V for the last 20 days.
Noront's stock surged 29% to a 52-week high of C$0.31 a share on the news.
In response to the proposed unsolicited offer, Noront's board would review the terms of the proposal and recommended that shareholders deferred from taking any action.
As an unsolicited proposal by an insider of the corporation, shareholders would be entitled to receive a valuation. If the proposal was formally made, shareholders would have 105 days to consider their alternatives.
Noront's board has formed a special committee, including three independent directors.
Wyloo made its initial investment in Noront in December and has since stepped up investments in critical battery-related commodities.
Noront has ownership of, or a controlling interest in, all the major discoveries in the Ring of Fire – an emerging multi-metals area located in the James Bay Lowlands of northern Ontario.
The company’s first project is a 100%-owned, high-grade, nickel, copper and platinum group element deposit called Eagle’s Nest. It is the largest high-grade nickel discovery in Canada since Voisey’s Bay and the most advanced project in the Ring of Fire.
The other projects in its pipeline are the Blackbird and Black Thor chromite deposits in conjunction with a ferrochrome production facility in Sault Ste. Marie.
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