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NEWS RELEASE: Noront Files Directors’ Circular in Support of BHP’s All-Cash Offer for Noront and Recommends Shareholders Accept the Offer (Noront Resource – August 9, 2021)

TORONTO, Aug. 09, 2021 (GLOBE NEWSWIRE) — Noront Resources Ltd. (TSXV: NOT) (“Noront” or the “Company”) today announced that it has filed a directors’ circular (the “Directors’ Circular”) in connection with the proposed acquisition of Noront by BHP Western Mining Resources International Pty Ltd (“BHP” or the “Offeror”), a wholly-owned subsidiary of BHP Lonsdale Investments Pty Ltd. (“BHP Lonsdale”).

The Transaction

As announced on July 27, 2021, Noront entered into a definitive Support Agreement pursuant to which BHP has made a take-over bid to acquire all of the issued and outstanding common shares of Noront (the “Noront Shares”) for C$0.55 per Noront Share in cash (the “Offer”). The total equity value of the transaction is C$325 million (based on 100% of the fully diluted shares outstanding).

The cash consideration of C$0.55 per Noront Share (the “Offer Price”) represents a premium of 129% to Noront’s unaffected closing price of C$0.24 on May 21, 2021, the last trading day prior to the date that Wyloo Metals Pty Ltd. (“Wyloo”) first publicly announced its intention to make an offer for Noront, and is C$0.235 per share, or 75%, higher than the C$0.315 per share proposed by Wyloo in its announcement on May 25, 2021.

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NEWS RELEASE: Coalition Finds Noront Has Not Disclosed Business Risk from Indigenous Opposition, Calls for OSC to Investigate Ring of Fire Proponent (August 6, 2021)

Osgoode Hall Law School’s Environmental Justice & Sustainability Clinic research into Noront Resources Ltd. shows that the junior mining firm has not disclosed risks to its business stemming from significant Indigenous opposition to its flagship project in its most recent annual reports, annual information forms, management discussions and analyses, and news releases.

“Indigenous opposition, and the regulatory risk it poses, can have a material impact,” said Dr. Dayna Nadine Scott, Associate Professor at Osgoode Hall Law School and Co-Director of the Clinic. “If known, First Nation opposition to projects should be disclosed to investors. Companies should not be cherry-picking information and only mentioning relationships with communities that support their projects. That’s why we are urging Ontario regulators to conduct an investigation into Noront’s disclosures in the Ring of Fire, where Indigenous interests are significant and the communities are divided.”

Just as competing offers to buy Noront by two major mining companies, BHP and Wyloo Metals, are bringing increased attention to the company, Osgoode Hall Law School’s Environmental Justice & Sustainability Clinic, Greenpeace, the Council of Canadians, and MiningWatch Canada today wrote to the Ontario Securities Commission (OSC), Ontario’s corporate regulator, asking for an investigation into the adequacy of Indigenous risk disclosure by Noront.

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BHP to expand nickel operations to meet soaring demand – by Cecilia Jamasmie (Mining.com – August 3, 2021)

https://www.mining.com/

BHP (ASX, LON, NYSE: BHP) will make a final investment decision on a major expansion of the processing plant at its Mt. Keith nickel mine in Western Australia as it invests further in battery metals to meet expected soaring demand.

Nickel is a key component for EVs cathodes, and the world’s no. 1 miner sees nickel demand growing faster than anticipated due to a spike in the adoption of electric vehicles (EVs), as governments commit to decarbonizing their economies and set end dates for combustion engine sales.

“We believe that over 2020 to 2030, overall nickel demand will grow at 5% compound annual growth rate, and that nickel-in-battery demand will grow at a rate of 21% CAGR,” BHP Nickel West president Eddy Haegel told the annual Diggers and Dealers conference on Tuesday.

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BHP was rebuffed twice by Noront’s biggest shareholder before making takeover bid – by Niall McGee (Globe and Mail – July 31, 2021)

https://www.theglobeandmail.com/

BHP Group Ltd. had designs on Ring of Fire exploration company Noront Resources Ltd as early as the spring, but on two occasions its plans were stymied by Wyloo Metals Ltd., Noront’s biggest stakeholder.

Melbourne-based BHP on Tuesday made a $0.55 a share takeover offer for Noront, obliterating a previous $0.315 approach by fellow Australian company Wyloo Metals.

A regulatory filing this week shows that BHP first approached Toronto-based Noront in April with a proposal to acquire a 9.9 per cent stake in the company.

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BHP charges up Nickel West with clean energy – by Nickolas Zakharia (Australian Mining – July 30, 2021)

Home

BHP plans to install two solar farms and a battery storage system to power the Mt Keith and Leinster mines at its Nickel West operations in Western Australia.

The clean energy sources are expected to cut emissions from electricity at the two mines by 12 per cent based on its 2020 financial year levels.

The Northern Goldfields Solar Project will include a 27.4-megawatt solar farm at Mt Keith, and a 10.7-megawatt solar farm and 10.1-megawatt battery at Leinster to reduce diesel and gas power.

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BHP and Forrest may be better together on nickel play (Australian Financial Review – July 28, 2021)

https://www.afr.com/

BHP might have trumped Andrew Forrest’s bid for a Canadian nickel miner, but there’s no reason the pair can’t form a partnership on this project.

The prospect of iron ore titans Andrew Forrest and BHP duking it out over a Canadian nickel junior is obviously delicious. But the rational move is for the old foes to get into bed together on what both clearly see as a great opportunity amid a broader rush for battery minerals.

BHP announced on Tuesday night a $C325 million ($351 million) bid for Noront, which has a highly rated nickel project called Eagle’s Nest in Ontario’s Ring of Fire region (how Game of Thrones is that?) some 1200 kilometres north of Toronto.

The Big Australian’s bid, which has the support of the Noront executive team (which owns 9.9 per cent of the company), is pitched at a 75 per cent premium to the takeover bid by Forrest’s Wyloo Metals in May.

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Fight over nickel assets heats up with BHP’s $258m Noront bid – by Cecilia Jamasmie (Mining.com – July 27, 2021)

https://www.mining.com/

BHP (ASX, LON, NYSE: BHP) has offered C$325 million ($258.45 million) for Canadian nickel miner Noront Resources (TSX-V: NOT), trumping a bid by Australian mining billionaire Andrew Forrest’s Wyloo Metals, as top miners race to secure supplies of battery metals.

The world’s largest miner is offering C$0.55 per share of Noront, representing a premium of 129% to the firm’s closing price on May 21, a day before Wyloo’s proposal.

Noront is recommending that shareholders accept the bid, which comes through BHP Lonsdale, a subsidiary that already owns 3.7% of the Canadian nickel producer.

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BHP strikes friendly deal to buy Ring of Fire explorer Noront for $325-million – by Niall McGee (Globe and Mail – July 28, 2021)

https://www.theglobeandmail.com/

BHP Group Ltd. has reached a friendly agreement to acquire Ring of Fire explorer Noront Resources Ltd. for $325-million, trumping an earlier unsolicited approach from Australian private equity firm Wyloo Metals Pty Ltd.

Melbourne-based BHP said it intends to pay 55 cents a share in cash for Toronto-based Noront, 69-per-cent higher than the company’s closing price on the TSX Venture Exchange on Monday. The offer is also significantly higher than the $0.315-a-share proposal made by Wyloo, currently Noront’s largest shareholder, in May.

The Ring of Fire, situated 550 kilometres northeast of Thunder Bay in the James Bay Lowlands in Ontario’s Far North, has had an almost mythical hold on the Canadian mining industry for more than a decade, but so far no company has succeeded in building any mines in the region.

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Australian company BHP makes takeover bid for Canada’s Noront Resources (CBC Thunder Bay – July 27, 2021)

https://www.cbc.ca/news/canada/thunder-bay/

Another Australian company is moving forward with a takeover bid for Noront Resources, with a cash offer for all outstanding and issued shares of the Canadian company.

Noront’s board of directors is recommending shareholders accept the offer from BHP, which would pay 55 cents cash for each share.

This is the second Noront takeover bid by an Australian company this year. In May, Wyloo Metals offered 31.5 cents cash for Noront shares.

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BHP beats Forrest in takeover battle for prized nickel project – by Brad Thompson (Australian Financial Review – July 27, 2021)

https://www.afr.com/

BHP has made a sensational bid to snatch a high-grade nickel project in Canada from the clutches of Andrew Forrest in another sign of how determined it is to secure a future in battery metals.

The BHP bid for Noront Resources unveiled on Tuesday night trumps a takeover offer lobbed by Dr Forrest’s privately-owned Wyloo Metals in May.

How Dr Forrest will react to the BHP raising the takeover stakes by a substantial premium remains unclear, with Wyloo controlling about 37 per cent of Noront stock.

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BHP swoops on Canadian nickel miner, trumping Forrest – by Thomas Biesheuvel (Bloomberg News – July 27, 2021)

https://www.bnnbloomberg.ca/

BHP Group agreed to buy Noront Resources Ltd. to add a nickel project in Canada, trumping a bid by Australian mining magnate Andrew Forrest, as the world’s biggest miner accelerates its push into metals poised to benefit from the green-energy transition.

BHP is increasingly gearing its portfolio toward so-called commodities of the future, as investors put greater weight on resource companies’ environmental credentials. The company is in the process of exiting thermal coal and is considering getting out of oil and gas.

At the same time, it’s putting greater emphasis on metals like copper and nickel, needed to support the green revolution. Last week it sealed a nickel supply agreement with Tesla Inc. and is expected to sanction a giant potash project later this year.

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NEWS RELEASE: BHP makes recommended all-cash offer of C$0.55 per share for Noront (July 27, 2021)

Noront Board recommends shareholders accept the offer

  • Consideration of C$0.55 per share represents a 129% premium to Noront’s unaffected closing price on May 21, 2021 and a 69% premium to Noront’s closing price on July 26, 2021, the last trading day prior to announcing this transaction.
  • The members of the Noront Board who voted on the matter unanimously recommend shareholders accept the offer.
  • Noront directors and senior management and a major shareholder holding an aggregate of 9.9% of the Noront shares on a fully diluted basis1 have agreed to tender all of their Noront shares to the offer.
  • Noront represents a growth opportunity in a prospective nickel basin capable of delivering a scalable, new nickel-sulphide district and provides the BHP group with more growth options in future facing commodities.
  • With proven expertise and capabilities in both exploration and bringing complex base metals projects into production, the BHP group is well positioned to advance Noront’s Ring of Fire projects through the next stages of development.
  • To tender your shares contact your broker or Kingsdale Advisors. Contact information is included below.

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BHP pushing for tax concessions from Saskatchewan government ahead of construction decision on Jansen mine – by Niall McGee (Globe and Mail – July 23, 2021)

https://www.theglobeandmail.com/

BHP Group Ltd. is in discussions with the Saskatchewan government about possible tax breaks as it nears a construction decision on the giant Jansen potash mine, two sources familiar with the talks said.

Australia’s BHP has already sunk US$4-billion into building mine shafts at the site, 140 kilometres east of Saskatoon, and as much as US$5.7-billion is needed to bring Jansen into production. The company is expected to decide as early as next month whether it will proceed with Jansen.

The Globe and Mail and Bloomberg reported in May that BHP was negotiating with Saskatoon-based Nutrien Ltd. on a possible joint venture agreement for Jansen. But the Melbourne-based miner is now facing the prospect of going it alone on Jansen, as talks with Nutrien have fizzled without an agreement in place, one of the sources said.

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BHP pulls out in front as Rio Tinto flounders – by Rachael Knowles (National Indigenous Times – July 22, 2021)

https://nit.com.au/

BHP is leading the pack in iron ore mining as its competitor Rio Tinto continues to reel from fractured relationships with Traditional Owners in Western Australia’s Pilbara region.

Rio Tinto has seen a steep decline in their iron ore shipments from the Pilbara, with the mining giant reportedly having shipped 76.3 million tonnes in the June quarter, 12 per cent less than the same period in 2020.

The miner also reported total production was down 5 per cent for the first half of this year. With Rio Tinto behind the eight ball, BHP reported their sellings at $US158.15 a tonne in the first half of the year, ahead of Rio Tinto’s $US154.90 a tonne.

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Brazil Prosecutors Target Final Samarco Dam Settlement This Year – by Mariana Durao (Bloomberg News – July 22, 2021)

https://www.bnnbloomberg.ca/

(Bloomberg) — A final settlement between Brazilian authorities and the Samarco iron-ore venture can be reached this year, bringing legal certainty to owners Vale SA and BHP Group six years after a devastating tailings dam collapse.

That’s according to federal prosecutor Carlos Bruno Ferreira da Silva, who said in an interview that the final reparation value is yet to be defined and will be based on independent technical studies.

Silva, who is leading talks on behalf of prosecutors, pointed to a document signed by the parties that estimates talks to last about four months from June 22, the last four weeks of which would be focused on a final draft. Authorities and company officials have been meeting weekly.

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