Diversified major BHP has urged shareholders of Canadian junior Noront Resources to take up its offer, stating that it is the only one currently on the table and that there is no guarantee that another offer will materialise.
The previous proposal of Wyloo Metals of C$0.70 a share fell away when BHP topped it with a C$0.75-a-share offer.
Noront has not heard from Andrew Forrest's Wyloo since BHP trumped its proposal more than a week ago.
BHP chief development officer Johan van Jaarsveld said: “Shareholders who choose not to tender to BHP’s offer today should consider the significant risk of remaining invested in Noront, which includes complex project execution, development of remote infrastructure, and substantial funding requirements that are likely to result in material dilution for Noront shareholders.”
He also reminded Noront shareholders that the company traded at C$0.24 a share before any offers were made.
“We urge shareholders to tender well ahead of the deadline of November 9, 2021 to ensure the offer succeeds.”
Noront also urged shareholders to tender their shares to the BHP offer.