BHP vs. Wyloo offer for Ring of Fire assets



Mining heavyweight BHP has increased its cash offer to Noront Resources shareholders to $ 0.75 a share in its bidding war with fellow Australian miner Wyloo Metals for control of the main metals project in the Circle region fire from northern Ontario.

The BHP offer has a mark-up of 36 percent over a previous offer and a premium of 7 percent for This week’s previous Wyloo deal.

Noront’s board of directors considers BHP’s offer to be superior to Wyloo’s $ 0.70 offer and recommends that Noront shareholders tender their shares to BHP’s offer. The deadline to do so is November 9 at 11:59 p.m. Toronto time.

“Our increased offering of C $ 0.75 per share provides an attractive premium to Noront shareholders and is now available to shareholders,” Johan van Jaarsveld, BHP business development manager, said in a statement.

“Our offering provides shareholders with the value inherent in Noront’s portfolio of projects, including the Eagle’s Nest project, providing shareholders who accept our offering with certainty of value and immediate liquidity.”

Both Wyloo and BHP are seeking control of Noront’s unexploited metal assets in the remote Ring of Fire region of the James Bay region, about 500 kilometers by air from Thunder Bay. The prize is Noront’s mining-ready nickel, copper and platinum group metals assets, Eagle’s Nest.

“Now is the time for shareholders to decide whether they wish to bid on our enhanced offering and to crystallize the compelling and comprehensive value it represents,” added van Jaarsveld.

In a statement, BHP said it “recognizes that delivery of Noront’s portfolio of projects in the Ring of Fire is expected to take many years, require significant capital investments, the development of remote infrastructure and the management of numerous There is no certainty that the remaining shareholders invested in Noront will ever realize the value of their shares offered by BHP in cash today. ”

Both companies said BHP’s revised offer provides Noront shareholders the “inherent value” of Noront’s stable of untapped projects “without the long-term risks associated with the development and execution of these projects.” .

“This transaction offers a premium to Wyloo’s offering and delivers solid value to Noront shareholders through an all-cash offering,” replied Noront CEO Alan Coutts. “Noront’s board of directors has determined that BHP’s enhanced offering is in the best interests of the company. and its shareholders and recommends that Noront shareholders tender their shares to the BHP offer.

Although Wyloo is a 37% shareholder in Noront, BHP and Noront insist that this latest offer from BHP does not require Wyloo’s backing to be successful.



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