BHP moving to take over Noront Resources
Noront Resources, the mining company that currently holds development rights in northern Ontario's Ring of Fire chromite deposit with plans to build a smelter in Sault Ste. Marie, is about to be taken over.
The company's board of directors is recommending acceptance of an offer to shareholders from BHP---a global resources company with headquarters in Australia.
The offer is $0.55 a share, in a deal worth $325 million.
"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," Noront said in a news release Tuesday.
BHP's offer represents a 129 per cent premium to Noront’s closing price on May 21 and a 69 per cent premium to the closing price on July 26, the last trading day before the announcement.
The members of the Noront board who voted on the matter are unanimously recommending shareholders accept the offer.
"This is a win-win for both BHP and Noront shareholders. For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," said Johan van Jaarsveld, BHP chief development officer.
Noront CEO Alan Coutts agrees.
"This offer is in the best interests of the company and shareholders. BHP has the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle’s Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come," Coutts said.
Noront said additional information regarding the offer will be included in a take-over bid circular which will be mailed to shareholders soon.
CTVNews.ca Top Stories
New Norad commander calls Canada's defence policy update 'very encouraging'
American troops will be spending more time training in the Far North, the new commander of Norad says, a strategy that fits 'hand-in-glove' with Canada's renewed focus on Arctic defence.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Improve balance and build core strength with this exercise
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.