BHP group has pitched an all-cash offer to take-over Canadian miner Noront Resources. The move is part of BHP’s focus on battery metals. Noront Resources has a large land position in the nickel-copper-platinum-palladium deposit located in the Ring of Fire region in Northern Ontario.
Noront’s board has determined that accepting the offer is in the best interest of the company and has recommended the offer to its shareholders. The offer is not subject to any financing condition.
BHP Western Mining Resources, a wholly-owned subsidiary of BHP Lonsdale Investments has made the offer. Both BHP Western Mining and BHP Lonsdale are subsidiaries of BHP group.
BHP is offering $0.55 in cash for each common share of Noront Resources, which is at a 69pc premium to the closing price of $0.325 per Common Share on the Toronto stock exchange on July 26.
This offer counters the $0.315 per share offer made by Wyloo on May 21. BHP’s offer is at a 75pc premium to Wyloo’s proposed offer.
Commenting on the BHP’s offer, Noront CEO, Alan Coutts said, “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.”
Noront’s Eagle’s Nest project is the largest high-grade nickel discovery in Canada, since Voisey’s Bay and is the most advanced project in the Ring of Fire region. The project is expected to produce 3,000mt of ore daily and could be processed to supply approximately 150,000mt nickel-bearing concentrate annually.