Environmental groups claim Ring of Fire mine developer is hiding something, wants OSC to investigate
Ring of Fire mine developer Noront Resources is urging its shareholders to accept BHP Group’s offer to buy its nickel, copper and chromite properties in Ontario’s Far North.
BHP, one of the world’s largest mining companies, entered the picture in late July with a cash offer of $325 million, or $0.55 cents a share, to best a hostile insider takeover offer made by its Australian rival Wyloo, Noront’s biggest shareholder at 25 per cent. Wyloo is owned by Australian mining magnate Andrew Forrest.
In a mere formality, Noront said it has filed a directors’ circular recommending its shareholders accept the BHP offer. Noront’s board of directors said it represents a 129 per cent higher premium than where Noront’s shares were trading before Wyloo made its unsolicited bid at the end of May, and is 75 per cent higher than $0.315 share offer proposed by Wyloo.
“The BHP Offer represents a compelling premium and immediately crystallizes certain value by providing 100 per cent cash consideration for Noront Shares,” said Noront CEO Alan Coutts in an Aug. 9 news release.
“Noront’s board of directors recommends that Noront shareholders tender their Noront shares to the BHP offer. BHP and Wyloo are both after Noront’s Eagle’s Nest nickel-copper deposit, 500 kilometres of Thunder Bay in the isolated James Bay region.