BHP Group PLC (LSE:BHP) increased its cash offer for Noront Resources Ltd (TSX-V:NOT), trumping a bid from Australian billionaire Andrew Forrest’s Wyloo Metals Pty Ltd and winning support from Noront.
BHP lifted its offer to C$0.75 per share, up 36% from its previous offer of C$0.55 per share and exceeding the C$0.70 per share offer from Wyloo made two days ago. BHP’s new offer values the Canadian nickel miner at about C$344mln (GBP202mln).
Noront is focused on the emerging mining district, known as The Ring of Fire, in Northern Ontario. It is developing its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy.
The world’s largest miner said it recognized that delivering Noront’s portfolio of projects in the Ring of Fire is expected to take many years, require significant capital investment, development of remote infrastructure, and management of numerous stakeholders.
“There is no certainty that shareholders remaining invested in Noront will ever realize the value for their shares offered by BHP in cash today,” it said.
The Noront board said the proposal from Wyloo ceased to be a “superior proposal” and has recommended BHP’s offer to its shareholders.
BHP’s offer does not require Wyloo’s support to be successful.