Wyloo Metals is the frontrunner to acquire Noront Resources, with the Andrew Forrest-backed outfit set to reel in the Canadian nickel miner over a competing bid from BHP.
That comes just five months after the Andrew Forrest-backed outfit proposed a takeover of the Canadian nickel miner.
Noront Resources’ board overnight deemed Wyloo Metals’ bid of C$0.70 (AU$0.76) per share to be a superior proposal to BHP’s offer of C$0.55 (AU$0.60), with BHP now given five business days to match Wyloo’s offer.
Should no offer be provided in that time, Wyloo and Noront will enter into a new agreement, with Wyloo agreeing to loan the company up to C$23 million (A$25 million) to meet a termination payment to BHP and other related costs.
Luca Giacovazzi, head of Wyloo Metals, has said the Ring of Fire development, of which Noront Resources is the majority owner, was a long-term mining district with value that was impossible to quantify.
“Only the Wyloo offer can provide Noront shareholders with comfort in the knowledge that they have received sufficient optionality and value for their ownership of Canada’s next great mineral hub,” he said.
TD Securities will act as financial adviser to the takeover and Bennett Jones will act as legal counsel.
Wyloo currently holds about a 37 per cent share in Noront, having increased from the 23 per cent stake it held when it first sought to acquire Noront in May.