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U.S. Startups Seek to Claw Back China’s Share of ‘Technology Minerals’ Market – by Stew Magnuson (National Defense Magazine – September 7, 2021)

https://www.nationaldefensemagazine.org/

MOUNTAIN PASS, Calif. — Atop an arid mountain about an hour’s drive from Las Vegas, an excavator scooped up giant boulders mined from a nearby open pit and dumped them into a machine designed to reduce them to pebbles about the size of a marble.

Down in the pit, some 500 feet below, miners were preparing explosive charges that would blast basalt out of the mountain later that afternoon. Inside that rock were rare earth minerals, 17 different elements valued as building blocks for some of today’s most ubiquitous technologies — everything from electric cars to smartphones.

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NEWS RELEASE: Wyloo Submits Arrangement Agreement to Noront (Source: Wyloo Metals – September 6, 2021)

PERTH, Australia, Sept. 06, 2021 (GLOBE NEWSWIRE) — Wyloo Metals Pty Ltd (“Wyloo Metals”) confirms it submitted an Arrangement Agreement to the Board of Noront Resources Ltd (TSXV:NOT) (“Noront”) for consideration on September 3, 2021. In submitting the agreement, Wyloo Metals calls upon the Noront Board to act in the best interest of shareholders and progress the formalization of Wyloo Metals’ superior proposal in line with its fiduciary obligations.

Wyloo Metals restricted on due diligence

Wyloo Metals received a revised confidentiality agreement from the Noront Board on August 31, 2021. Wyloo Metals was surprised to learn that the removal of the standstill provision required the consent of BHP Western Mining Resources International Pty Ltd. (“BHP”).

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Noront stands its ground against Wyloo over Ring of Fire assets – by Ian Ross (Northern Ontario Business – September 3, 2021)

https://www.northernontariobusiness.com/

Eagle’s Nest nickel, copper project is the prize in looming bidding war between two Australian mining heavyweights

Alan Coutts is ignoring the posturing from Wyloo Metals. The president-CEO of Noront Resources said he’s more keenly interested in receiving legitimate bids to secure the best deal for shareholders.

“It’s one thing to put out a press release, it’s another to table a formal binding offer.”

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NEWS RELEASE: Noront Responds to Wyloo’s Non-binding Indication of Interest (August 31, 2021)

TORONTO, Aug. 31, 2021 (GLOBE NEWSWIRE) — Noront Resources Ltd. (“Noront” or the “Company”) (TSXV: NOT) acknowledges receipt on August 30, 2021 of a non-binding letter from Wyloo Metals (“Wyloo”). The letter describes Wyloo’s interest in potentially acquiring all of the common shares of Noront that Wyloo does not currently own, subject to a number of conditions, including due diligence, and negotiating and executing a definitive arrangement agreement.

Responding to the Wyloo Proposal

Noront is party to a July 27, 2021 support agreement with BHP Western Mining Resources International Pty Ltd (“BHP”) and its parent, BHP Lonsdale Investments Pty Ltd (the “Support Agreement”), under which Noront agreed to support an offer by BHP to acquire all of the outstanding common shares of Noront that BHP does not already own (the “BHP Offer”). As is customary, the Support Agreement defines the circumstances in which Noront is permitted to engage with, and provide confidential information to, another party that makes a proposal to acquire the common shares of Noront.

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OPINION: Forrest and BHP go to war over a company no one has ever heard of – by Elizabeth Knight (Brisbane Times – August 31, 2021)

https://www.brisbanetimes.com.au/

BHP versus Andrew Forrest was once a David and Goliath fight confined to the Pilbara. Today the battle between the two titans of iron ore, has moved to the far reaches of Northern Canada and the quarry they both seek is a nickel company no one has ever heard of.

So small and financially embattled is Noront Resources, that nine months ago it was worth just around $70 million dollars – little more than the petty cash held in the head offices of BHP and Forrest’s Fortescue.

Thanks to the bidding war between Forrest and BHP, Noront is now capitalised at $380 million and counting. Forrest lifted his offer this week to C70 cents per share – trumping BHP’s C55 cents.

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Wyloo hikes bid for Ring of Fire explorer Noront Resources, trumps BHP offer – by Naill McGee (Globe and Mail – August 31, 2021)

https://www.theglobeandmail.com/

Wyloo Metals Pty Ltd. has bumped up its offer for Noront Resources Ltd., trumping BHP Group Ltd.’s bid, and in a highly unusual move is proposing to keep the struggling Ring of Fire exploration company as a publicly traded entity.

Since May, Toronto-based Noront has been the subject of a takeover tussle between Australian private equity firm Wyloo and BHP, the world’s biggest mining company, which is also based in Australia.

Both are extremely well funded. BHP’s market valuation is US$165-billion. Wyloo is backed by Andrew Forrest, founder and chair of Fortescue Metals Group, and one of the richest individuals in Australia.

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Chanticleer: Forrest won’t let BHP snatch his nickel prize – by James Thomson (Australian Financial Review – August 31, 2021)

https://www.afr.com/

Mining billionaire Andrew Forrest has hit back at BHP in their battle for a Canadian nickel explorer with big dreams and big challenges.

He might have a $27.5 billion fortune and a $2.35 billion dividend cheque coming from Fortescue Metals Group, but Andrew Forrest still has plenty of the underdog mentality that’s marked his career.

So having watched BHP waltz in and try to pinch Canadian nickel junior Noront Resources out from under him, Forrest was never going to take things lying down.

On Monday night, he launched a fresh bid for the Canadian business, beating BHP’s offer of C55¢ a share with a C70¢ pitch – and throwing in a history lesson to boot.

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Wyloo Metals wants to sweep the board clean at Noront Resources – by Ian Ross (Northern Ontario Business – August 30, 2021)

https://www.northernontariobusiness.com/

Australian miner boosts offer to Noront shareholders as take-over battle with BHP continues

The Ring of Fire is now a hands-on project for Australian mining magnate Andrew Forrest. Wyloo Metals, a subsidiary company of Forrest’s Tattrarang private investment outfit, is promising new leadership to bring the promise of the James Bay mineral belt to reality as part of its takeover bid of Noront Resources.

In its latest pitch to Noront investors, Perth-headquartered Wyloo wants to clean house at Noront and appoint Forrest as chair of a new board of directors.

While in the early stages of a bidding war with rival BHP, Wyloo issued a new acquisition offer to Noront shareholders on Aug. 30 to acquire the Toronto junior miner’s assets in the remote mineral belt 500 kilometres north of Thunder Bay.

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NEWS RELEASE: Wyloo Proposes Offer to Participate in Noront’s Future Under New Leadership, While Offering Attractive Cash Alternative (Wyloo Metals – August 30, 2021)

PERTH, Australia, Aug. 30, 2021 (GLOBE NEWSWIRE) —

  • Wyloo Metals’ proposal will provide each Noront shareholder with the option of either accepting a superior price for their shares or participating in Noront’s growth potential by remaining as a shareholder
  • Noront shareholders have a unique opportunity to participate in Canada’s next great mineral hub led by Dr. Andrew Forrest AO, the Founder and Chairman of Fortescue Metals Group (ASX:FMG), who intends to replicate his success at Fortescue with Noront’s Ring of Fire assets
  • Consideration of Cdn$0.70 in cash per share represents a 192% premium to Noront’s unaffected closing price on May 21, 2021 and a 27% premium to BHP’s Cdn$0.55 per share take-over bid price1

Wyloo Metals Pty Ltd (“Wyloo Metals”) has today submitted a proposal (the “Acquisition Proposal”) to the Board of Noront Resources Ltd. (TSXV:NOT) (“Noront” or the “Company”) as part of a comprehensive strategy to rebuild the Company and unlock the future of the Ring of Fire. Under its Acquisition Proposal, Wyloo Metals will provide each Noront shareholder with the option of either participating in Noront’s growth potential by remaining as a holder under a new and proven leadership team, or accepting a superior price for some or all of their shares.

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What mining, oil and gas industries can learn from Sudbury, the city that went from major polluter to thriving environment – by Nadia Mykytczuk (The Conversation – August 25, 2021)

https://theconversation.com/

Nadia Mykytczuk is the Interim CEO/President of MIRARCO, Laurentian University.

When Prime Minister Justin Trudeau met with Swedish environmental activist Greta Thunberg in Montréal two years ago, he promised to plant two billion trees by 2030 to help Canada meet its net-zero emissions goal.

Planting trees, however, is hard work. It takes money and planning. But a re-greening roadmap exists.

Sudbury, the largest city in Northern Ontario, transformed itself after decades of environmental devastation, brought on by the mining industry. Other communities and industries, like oil and gas, can replicate the city’s efforts to aid in global efforts to fight climate change.

A devastated landscape

For almost 100 years, Sudbury’s community and environment were blanketed in sulfur dioxide and metals released from the smelting of nickel ore.

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The dangers of understating the magnitude of the battery material supply/demand imbalance – by Matt Fernley (Kitco News – August 20, 2021)

https://www.kitco.com/

Matt Fernley is Head of Research, Volta Fund; MD of Battery Materials Review.

I wanted to talk about the Nature article on battery raw materials that’s been doing the rounds this week. The article, Electric Cars: The Battery Challenge (Nature, 19 August 2021), is an otherwise excellent discussion of a lot of the issues with sourcing materials for electric cars. Unfortunately there’s a big “but”. And that “but” is in its treatment of primary battery raw materials.

While the author, Davide Castelvecchi, has clearly spoken to a lot of experts on batteries, recycling and other elements of the supply chain, maybe he hasn’t known exactly which questions to ask, because we get a discussion almost entirely on ternary batteries with little to no mention of LFPs (and their ability to lower demand for Nickel, Cobalt and Manganese) and we also get only three paragraphs on the impact of extractive industries on the battery industry.

All the “analysis” on raw materials is effectively based on BNEF’s Long-Term Electric Vehicle Outlook for 2021 and the general conclusion, based on a quote from the BNEF analyst, is that “temporary shortages [of battery raw materials] and dramatic price swings… [will] work themselves out”.

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NEWS RELEASE: Noront Responds to Wyloo Statement and Reiterates Support of BHP Offer (Source: Noront Resources Ltd. – August 20, 2021 08:30 ET)

TORONTO, Aug. 20, 2021 (GLOBE NEWSWIRE) — Noront Resources Ltd. (TSXV: NOT) (“Noront” or the “Company“) is responding to the statement issued by Wyloo Metals Pty Ltd (“Wyloo”) yesterday, in order to clarify several of Wyloo’s misleading statements relating to 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“). Noront reiterates its support of BHP’s offer to acquire the shares of Noront (the “Offer”) and the recommendation of the Board of Directors of Noront that shareholders tender their shares and accept the Offer.

Access to Information for Wyloo; Ability to Make a Superior Proposal

Prior to the Offer, Noront engaged fully and provided access to due diligence information to all parties that were prepared to enter into a customary confidentiality agreement typical for transactions of this nature. Wyloo was provided an opportunity to execute such a confidentiality agreement (which was consistent with the confidentiality agreement that was executed by BHP) and have access to due diligence information, and Wyloo declined to do so.

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Sudbury skyline changes as the Lockerby Mine Headframe comes down – by Alana Pickrell (CTV News Northern Ontario – August 18, 2021)

https://northernontario.ctvnews.ca/

SUDBURY – It’s a change in history as the skyline in Sudbury now looks a little bit emptier. On Aug. 8, the headframe at the Lockerby Mine site was demolished as part of the province’s Abandoned Mines Rehabilitation Program.

“Ontario is committed to the rehabilitation of abandoned mine sites to ensure the protection of public health and safety, as well as the environment,” said the Ministry of Northern Development, Mines, Natural Resources and Forestry in an email to CTV News.

“The demolition and cleanup work at the Lockerby Mine site demonstrates Ontario’s continued commitment to safe and environmentally sustainable mining.”

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BHP’s Noront bid hits impasse as Wyloo won’t budge – by Staff (Mining.com – August 19, 2021)

https://www.mining.com/

Wyloo Metals, the top shareholder of Noront Resources (TSXV: NOT), said on Thursday that it does not intend to support or tender the offer made by BHP to acquire Noront, and is considering making a “superior” offer to acquire the remaining stake in the Canadian nickel miner.

Noront is owner of the early-stage Eagle’s Nest nickel-copper deposit in northern Ontario’s Ring of Fire district. It has been billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey’s Bay nickel find in Newfoundland and Labrador, with an initial mine life of 11 years.

In late July, BHP announced its offer to buy the Noront at a price of C$0.55 per share for a total value of C$325 million, which represented a premium of 129% based on the stock’s closing price on the day before Wyloo’s proposal two months earlier.

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China Driving Global Diamond Demand – by Paul Zimnisky (Solitaire International – August 2021)

https://gjepc.org/

Mainland Chinese jewellers continue to open new stores at a record pace as the government stimulates domestic consumption.

In the company’s most recently concluded fiscal quarter, i.e. calendar-Q2, China’s largest jeweller Chow Tai Fook said it saw company-wide sales soar 70% year-over-year driven by “buoyant consumer sentiment” in Mainland China and “continued recovery” in Hong Kong and Macau markets.

However, perhaps most notably management also said that the company opened 259 net new stores, all in Mainland China, bringing the company-wide total to 4,850 (see below chart).

Chow Tai Fook’s store count has surged in recent years as the company uses a franchising model to leverage “local knowledge” in new Mainland China markets. The strategy allows the company to penetrate smaller but rapidly growing cities colloquially referred to as “Tier III, IV and V” sized cities.

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