If Wyloo is successful, it is the shareholders who will have to pay the $13M termination fee to BHP. Wyloo will protect itself, by way of interest payments on the loan, which will be converted to shares, thereby further diluting shareholder value while Wyloo increases it's stake. AND, if #3 comes out before BHP counters, Wyloo is demanding a higher termination fee than BHP.

Starting to see how Twiggy made his fortune - on the backs of others. The "ride" with Twiggy doesn't look like it will be an enjoyable one.

If the Arrangement Agreement is entered into, Wyloo Metals has also agreed to provide a loan to Noront of up to C$23 million (the "Wyloo Loan") to finance, among other things, the termination payment of C$13 million payable to BHP upon the termination of the Support Agreement, as well as other transaction related costs. The term of the Wyloo Loan will be 12 months from completion of the Wyloo transaction, with interest of 5% per annum payable quarterly in either cash or common shares of Noront, at the option of Noront and subject to receiving shareholder approval for the payment of interest in common shares of Noront, and subject to the approval of the TSXV Venture Exchange.

AND:

The terms of the Arrangement Agreement, if executed, will provide that Wyloo Metals will be entitled to a termination payment of C$17 million (equal to approximately 4% of the total equity value of the transaction based on 100% of Noront’s fully diluted shares outstanding) if the Arrangement Agreement is terminated in certain circumstances. This termination payment will not be payable if BHP elects to match the Wyloo Offer and Noront and Wyloo Metals therefore do not enter into the Arrangement Agreement.

Hobbit