Noront Resources has commenced discussions with Andrew Forrest’s Wyloo Metals regarding its superior takeover offer for the company.
Soon after BHP announced it had ended discussions with Wyloo over an agreement regarding the former’s $C0.75 ($0.82) per share offer for Noront, Wyloo upped its bid to $C1.10 per share – a 47 per cent premium to BHP’s highest offer.
Noront said it had received Wyloo’s superior bid and would commence negotiations with the company “directly and constructively”.
“Noront and its advisors are reviewing the transaction documents, and the Noront board and the special committee remain focused on fulfilling their fiduciary duties and surfacing maximum value for the shareholders of Noront,” the company said in a statement.
The takeover tussle between BHP and Wyloo has been taking place since May, when Wyloo’s initial $C0.315 per share offer prompted BHP to put an $C0.55 per share all-cash bid on the table.
The companies went back and forth on a further offer before discussions commenced regarding Wyloo’s support of BHP’s $C0.75 per share offer for Noront.
The expiration date of BHP’s highest tender for Noront was extended four times to accommodate the company’s talks with Wyloo, which then broke down as Forrest’s company readied its next foray.
Noront’s Eagle’s Nest project in Canada is considered a highly prospective area for the exploration of nickel, copper, platinum and palladium.
The project is located in the James Bay Lowlands of Ontario within a prospective metals region known as the Ring of Fire.
The company also owns the Blackbird, Black Thor and Big Daddy chromite deposits in the Ring of Fire.
BHP has voiced its ambition to expand its nickel and copper footprint, with the aim to invest in additional early-stage development projects going forward.
The major miner recognises the role base metals will play in the global energy transition going forward.