Noront board maintains support for BHP bid despite richer Wyloo proposal

TORONTO – The board of Noront Resources Ltd. is maintaining its support for a takeover offer for the company by BHP, despite a richer proposal by Wyloo Metals Pty Ltd.

The company says the proposed offer by Wyloo of 70 cents per share is a non-binding proposal to the Noront board and that the only binding offer is BHP’s bid of 55 cents per share.

It notes the Wyloo offer is conditional on completion of due diligence and negotiation and execution of a definitive arrangement agreement.

Noront is developing several projects in the Ring of Fire region in northern Ontario.

The BHP offer requires more than 50 per cent of the Noront’s shares not owned by BHP to be tendered to its bid.

However, Wyloo Metals, which owns a 37.5 per cent stake in Noront, has said it will not support BHP’s offer.

This report by The Canadian Press was first published Aug. 31, 2021.

Companies in this story: (TSXV:NOT)