Globe says Noront Resources warms to Wyloo takeover bid

2021-10-19 08:32 ET - In the News

The Globe and Mail reports in its Tuesday edition that Noront Resources has agreed to a $391-million takeover from Wyloo Metals, trumping a bid from BHP Group, but is leaving the door open to a higher offer. The Globe's Niall McGee writes that Wyloo, backed by Australian billionaire Andrew Forrest, first proposed buying Noront in May for 31.5 cents a share. BHP raised the ante with a 55-cent-a-share bid in July, and Noront's board supported it. However, Wyloo came back in late August, offering 70 cents a share. On Monday, Noront chief executive officer Alan Coutts said, "Wyloo Metals' proposal represents superior value for our shareholders." BHP now has five days to table a superior offer for Noront. If no offer is forthcoming, Noront will proceed with the Wyloo arrangement and its management and board will vote for the deal. The scramble for Noront is all about battery metals. The Ring of Fire contains rich deposits of several minerals, including nickel. While more engineering and study is needed, Noront's Eagle's Nest project has the potential to produce high-grade nickel that could be fed into the North American electric-vehicle supply chain. Noront shares are up more than 200 per cent since May.