Billionaire Andrew Forrest has raised his stake in takeover target Western Areas in a move that confirms suspicions he will try to complicate IGO Group’s friendly takeover of the nickel miner.
Dr Forrest’s private company Wyloo Metals spent $31.4 million buying Western Areas shares on Friday and Monday at an average price of just under $3.43 per share. That valuation is above the IGO offer price of $3.36 per share, which the Western Areas board supported shortly before Christmas.
Wyloo plans to build nickel mine in next five years, stoking renewed debate about reconciliation with Indigenous peoples
In the last days of December, Australia’s Wyloo Metals Ltd. offered $617 million in cash to buy Noront Resources Ltd., ending a bidding war with fellow Australian mining giant BHP Group, and emerging as the presumptive new owner of the collection of mineral claims in Ontario’s James Bay Lowlands known as the Ring of Fire.
The deal, expected to close in the next few months, leads to at least one major question: What happens next in the Ring of Fire? Cut off from the rest of Ontario, the project would require more than $1 billion of taxpayer investment in roads and infrastructure.
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Wyloo Metals Pty Ltd., the winner of a fierce bidding war for Noront Resources Ltd., hopes to have a large nickel mine in operation in the Ring of Fire, and an access road built into the remote minerals district in northern Ontario, within five years.
Earlier this week, BHP Group Ltd. said it was not willing to improve upon Wyloo’s offer of $617-million ($1.10 a share) for Noront, ending a seven-month battle. Wyloo, a private equity firm based in Perth, Australia, that specializes in investing in large resource projects, is backed by billionaire Andrew Forrest, founder of iron ore giant Fortescue Metals Group.
TORONTO and PERTH, Australia, Dec. 22, 2021 (GLOBE NEWSWIRE) — Noront Resources Ltd. (“Noront” or the “Company”) (TSXV: NOT) and Wyloo Metals Pty Ltd (“Wyloo Metals”) are pleased to announce that they have entered into a binding arrangement agreement (the “Arrangement Agreement”), pursuant to which Wyloo Metals has agreed to acquire up to all of the outstanding common shares of the Company (each, a “Common Share”)
Wyloo Metals is pleased to announce it will enter into a binding agreement with the Board of Noront Resources Ltd. (TSXV:NOT) (“Noront”) as part of its long-term strategy to responsibly develop the Ring of Fire in Northern Ontario.
The announcement is a significant milestone and paves the way for Wyloo Metals to revitalise Noront under the leadership of a new and proven Board of Directors, led by Dr Andrew Forrest AO.
Tattarang Chair Dr Andrew Forrest AO paid tribute to the Wyloo Metals team for recognising the significance of the Ring of Fire and the vital role its deposits will play in securing Canada’s critical metal supply chain.
TORONTO and MELBOURNE, Australia, Dec. 21, 2021 /CNW/ – BHP Lonsdale Investments Pty Ltd (“BHP Lonsdale”), a wholly owned subsidiary of BHP, today announced that it will not increase or extend its offer for Noront Resources Ltd. (“Noront”).
BHP Chief Development Officer, Johan van Jaarsveld, said: “BHP is committed to its strict capital discipline framework. While the Eagle’s Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP’s offer in order to match the C$1.10 per share proposal from Wyloo Metals Pty Ltd.”
TORONTO, Dec. 21, 2021 (GLOBE NEWSWIRE) — Noront Resources Ltd. (“Noront” or the “Company”) (TSXV: NOT) today announced it has settled an arrangement agreement (the “Arrangement Agreement”) with Wyloo Metals Pty Ltd and Wyloo Canada Holdings Pty Ltd (together, “Wyloo Metals”) under which Wyloo Metals has agreed to acquire up to all of the issued and outstanding common shares of Noront (“Common Shares”) that it does not already own, directly or indirectly, for C$1.10 per Common Share by way of a statutory plan of arrangement under the Business Corporation Act (Ontario) (the “Wyloo Offer”).
TORONTO, Dec. 14, 2021 (GLOBE NEWSWIRE) — Noront Resources Ltd. (“Noront” or the “Company”) (TSXV: NOT) announces that it has received a non-binding letter dated December 12, 2021, and related draft arrangement agreement and other ancillary transaction documents (collectively, the “Transaction Documents”), from Wyloo Metals Pty Ltd and Wyloo Canada Holdings Pty Ltd (together, “Wyloo Metals”) in respect of the Updated Wyloo Proposal (as defined below).
The Transaction Documents outline, among other things, the terms and conditions upon which Wyloo Metals would be prepared to acquire all of the common shares of Noront not already owned by Wyloo Metals for cash consideration of C1.10 per common share of the Company (the “Updated Wyloo Proposal”). The Updated Wyloo Proposal is subject to, among other things, negotiating and executing definitive Transaction Documents with Wyloo Metals.
BHP (ASX, LON, NYSE: BHP) has once again extended the deadline for Noront Resources’ (TSX-V: NOT) investors to accept or refuse its bid from December 14 to January 14, 2022, as talks with rival Wyloo Metals regarding the imminent takeover of the Canadian miner progress.
The world’s largest miner and the Canadian company have also amended a support agreement inked in July and amended on October 19 relating to Noront’s backing of BHP’s offer in order to extend the outside date in that agreement from December 14 to January 21, 2022.
https://www.northernontariobusiness.com/
Melbourne miner extending bid offer to mid-December
BHP, the world’s largest mining company, said it needs more time to reach an agreement with rival Wyloo Metals on taking over Noront Resources and its Ring of Fire mineral assets in Ontario’s Far North.
In a news release, BHP said it continues to have discussions with Wyloo Metals, Noront’s largest shareholder at 37 per cent, regarding its potential support of BHP’s C$0.75 per share offer to acquire Noront. Noront is siding with the BHP bid.
Fortescue Metals Group has defended its “crazy” green ambitions, saying the bold plans are a commercial imperative, not just environmental.
The miner’s new Fortescue Future Industries division has been inking deals around the world to look into massive “green” hydrogen and renewable energy projects, with founder and chair Andrew ‘Twiggy’ Forrest flagging potential costs worth more than $US100bn ($134.6bn).
Well before Wyloo Metals began its fight with BHP (NYSE: BHP; LSE: BHP; ASX: BHP) for Noront Resources (TSXV: NOT), the Australian company signed a definitive agreement with Toronto-based junior Orford Mining (TSXV: ORM) for its West Raglan nickel project in Quebec’s Nunavik region.
The deal, signed in January, sees Wyloo earning up to 80% of the West Raglan project by spending $25 million on exploration over the next seven years. Wyloo was expected to spend $1 million of the $25 million this year, but has already spent $1.7 million.
https://www.northernontariobusiness.com/
BHP extending the initial expiry of its offer from Nov. 9 to Nov. 16
The two leading Australian bidders for Noront Resources and its Ring of Fire nickel and metal assets are discussing a “mutually beneficial arrangement” regarding the sale of the Far North junior mining company.
Currently, Wyloo Metals, a subsidiary of Tattarang, led by Australian mining magnate Andrew Forrest, is the largest shareholder of Noront at 37 per cent.
Fortescue Metals Group has reported record first quarter iron ore shipments of 45.6 million tonnes (Mt), a three per cent increase on the same period last year.
Ore processed and railed also achieved record first quarter volumes, reflecting strong operational performance across the supply chain and expanded system capacity following the ramp up of Eliwana.
https://www.northernontariobusiness.com/
Lacking Wyloo counteroffer, deal remains best option for Ring of Fire assets
Noront Resources is urging its shareholders to tender their shares to BHP by Nov. 5, which would give the Australian miner control over a massive undeveloped metals project in the mineral-rich Ring of Fire.
BHP put its latest offer on the table on Oct. 20, increasing its previous bid by 36 per cent and including a 7 per cent premium to that of a rival Australian suitor, Wyloo Metals, which offered $0.70 per share just two days earlier.
