Cash-strapped Noront Resources rebuffs Wyloo Metals’ loan offer in Ring of Fire takeover bid – by Staff (Northern Ontario Business – June 4, 2021)

Wyloo owner Andrew Forrest sends a “big hug” to Matawa First Nation chiefs

Noront Resources is rejecting the offer of a $5-million loan from Australia’s Wyloo Metals, which is seeking to take over the Ring of Fire mine developer.

In a June 4 news release, Noront admitted it “has an immediate need for funding” but intends to go the private placement financing route to raise $6.1 million to keep the company running and to work on its exploration properties in the remote James Bay region.

Perth-headquartered and privately owned Wyloo, a major mining investor and explorer in Australia with global ambitions, came aboard last October to become Noront’s largest shareholder at 23 per cent. BaoSteel of China is Noront’s next largest shareholder at 5.4 per cent.

In late May, Wyloo announced it was making moves to acquire all of the outstanding common shares of Noront it doesn’t own with an all-cash offer of $133 million.

Wyloo is keenly interested in Noront’s Eagle’s Nest high-grade nickel and copper deposit, which it considers one of the best undeveloped nickel sulphide deposits in the world, situated in a remote spot 500 kilometres northeast of Thunder Bay.

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