PERTH (miningweekly.com) – Australia’s Wyloo Metals has completed the acquisition of TSX-V-listed Noront Resources, following a shareholder vote.
Noront Resources in December entered into a binding agreement with Andrew Forrest’s Wyloo Metals, after that company’s offer was tapped as a superior bid to mining major BHP’s bid for Noront.
Wyloo in December abandoned talks with BHP around the major’s bid for Noront, and instead launched an improved offer of C$1.10 a share for every Noront share held, trumping BHP’s own offer of C$0.75 a share.
Wyloo Metals CEO Luca Giacovazzi said with the acquisition now complete, the company was ready to deliver a new world-class battery metals producer in the province of Ontario, one that will play a significant role in meeting the rising demand for critical minerals as the world looks to decarbonise.
“Wyloo Metals was founded to ensure a successful transition to a lower carbon future by supplying the necessary critical metals to the world. Today we take an important step in our long-term strategy to become a producer of metals needed for a cleaner future,” Giacovazzi said.
“We know this future can be realised by working together with our Indigenous communities and stakeholders. The Ring of Fire represents a transformative, multigenerational opportunity and we are committed to working closely with all stakeholders to create mutually beneficial industry and employment opportunities across the region.”
Giacovazzi said that as one of the largest undeveloped, high-grade nickel sulphide deposits in the world, Noront’s Eagle’s Nest has the potential to transform Ontario into a leading producer of battery materials.
Wyloo has committed to spending C$25-million toward feasibility studies to investigate the potential for battery material production in Ontario and will assess the potential to produce the raw materials to supply emerging battery markets, creating a robust critical material supply chain in Ontario, extracting as much value as possible from Canada’s critical minerals.
Wyloo is also targeting C$100-million in contract awards to Indigenous-led businesses.
“Through genuine partnership, Wyloo Metals will work hand-in-hand with Indigenous-led businesses to fully realize the economic benefits provided by the Ring of Fire development through direct contract awards, removing barriers for access to capital, and providing practical business support. Wyloo will incorporate traditional knowledge and Indigenous expertise into its operations by engaging with Indigenous communities throughout the exploration and development processes,” said Giacovazzi.
In addition to targeting net-zero emissions, Wyloo Metals is hoping to set a global benchmark for future mining operations through its proactive commitments to sustainable development and the highest possible standards of environmental compliance, and would be investigating the development of wind power at site, as well as the use of ultramafic waste rock to capture and sequester carbon.
“Canada has a valuable opportunity to position itself as a green energy superpower for the next century and beyond. The demand for critical metals is being driven by a once-in-a-generation industrial revolution, as we transition from a carbon-based economy to electrification and low-carbon technologies,” Giacovazzi said.
“By investing in Ontario’s battery production capabilities, we will not only provide a secure, domestic supply of products for the emerging battery market but also provide a source of critical metals that meet the highest environmental and social standards.”