Ring of Fire operator Noront Resources Ltd. is recommending its shareholders tender to BHP Group Ltd.’s takeover offer, despite an approach from Wyloo Metals Pty Ltd. that proposed a higher per-share transaction.

In July, Melbourne-based BHP made a tender offer to Noront’s shareholders of 55 cents a share, which its board subsequently backed.

On Monday, Perth-based Wyloo proposed an arrangement that would see the private equity company acquire Noront for 70 cents a share.

Noront said in a release on Tuesday that shareholders should stick with BHP’s original offer because it is a sure thing. “The only binding offer available to shareholders is BHP’s,” Noront said.

Toronto-based Noront characterized Wyloo’s approach as a “non-binding indication of interest,” conditional on Wyloo completing due diligence, and the “execution of a definitive arrangement agreement.”

For BHP’s bid to succeed it must acquire at least 50 per cent of the shares it doesn’t already own, or roughly 48.15 per cent. BHP currently owns a 3.7 per cent stake in Noront.

Wyloo, which is Noront’s biggest stakeholder, controls about 37.5 per cent of the shares, and said it has no intention of tendering to BHP.

Noront’s Eagle’s Nest nickel project is what is inciting interest from the Australian heavyweights with miners worldwide scrambling to secure supplies of nickel. The industrial commodity is trading at multiyear highs thanks in part to demand for electric cars. Nickel is a key component in lithium ion batteries.

BHP is the biggest mining company in the world with a market valuation of around US$165-billion. Wyloo is backed by Andrew Forrest, founder and chair of Fortescue Metals Group, and one of the richest individuals in Australia.

Thanks for nothing Alan. Finally your true colours are showing. FIRE COUTTS!