BHP has proposed a $C325 million ($351 million) takeover offer for Noront Resources following a previous bid by Andrew Forrest’s Wyloo Metals.
The offer was made after Wyloo Metals proposed $C0.315 per Noront share in May 2021.
Noront’s board has unanimously recommended its shareholders accept the all-cash offer of $C0.55 per Noront share.
According to BHP, the takeover will allow the company to advance Noront’s Eagle’s Nest nickel-copper-platinum group element (PGE) deposit in Ontario, Canada.
“We are pleased that the Noront board has seen the value in our offer and has recommended it to its shareholders,” BHP chief development officer Johan van Jaarsveld said.
“This is a win-win for both BHP and Noront shareholders. For BHP, the acquisition of Noront presents a world-class growth option in a key future-facing commodity.
“The highly prospective Eagle’s Nest nickel project provides an excellent platform from which to develop further opportunities in Ontario’s Ring of Fire.
“For Noront shareholders, this offer recognises and realises the full value of Noront’s portfolio, delivering guaranteed shareholder returns in the near term. We are excited to bring our mining expertise and capabilities to develop these long-term opportunities.”
Noront chief executive officer Alan Couts said BHP’s offer outclasses Wyloo’s previous proposal.
“This transaction provides a significant premium to Wyloo’s indicative offer, and crystallises immediate and certain value through an all-cash offer,” Couts said.
“After careful consideration, Noront’s board of directors, with input from its financial and legal advisors and the special committee, determined this offer is in the best interests of the company and shareholders.
“BHP has the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle’s Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations and Ontario for years to come.”