Andrew Forrest's Wyloo Metals has launched a new offer for Noront
PERTH (miningweekly.com) – Mining magnate Andrew Forrest’s Wyloo Metals has abandoned talks with major BHP around nickel developer Noront Resources, instead launching an improved offer to acquire the TSX-V listed company.
BHP in October trumped Wyloo’s C$0.70-a-share cash offer for Noront, by offering C$0.75 a share for the Canadian nickel developer, with the Noront board throwing its weight behind the BHP offer.
Since then, BHP has been in talks with Wyloo over its 37.2% interest in Noront.
However, the mining major said on Monday that discussions with Noront had now ended, as the parties were unable to reach an agreement.
Instead, Wyloo has launched an improved offer for Noront, offering C$1.10 a share for every Noront share not already held by the company. The improved offer was a 47% increase on BHP’s bid for the Canadian company.
Wyloo said on Monday that the revised offer provided Noront shareholders with true optionality. The shareholder also confirmed that it would not support any alternate offers for Noront.
“Without the support of Wyloo Metals’ 37.2% direct interest in Noront, a competing plan of arrangement cannot be successful, and a competing take-over bid will be unlikely to meet any minimum tender condition,” Wyloo said in a statement.
Noront has been developing one of Canada’s largest potential mineral reserves, in a largely untapped northern Ontario region dubbed the Ring of Fire. 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.