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
Cargo ship had engine maintenance in port before Baltimore bridge collapse, officials say
The cargo ship that lost power and crashed into a bridge in Baltimore underwent 'routine engine maintenance' in port beforehand, the U.S. Coast Guard said Wednesday.
A Nigerian woman reviewed some tomato puree online. Now she faces jail
A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a “malicious allegation” that damaged its business.
Far North police 'dispatch' polar bear stalking schoolyard
Police and local hunters in an Ontario Far North First Nation community have “dispatched” a polar that was showing abnormal behaviour and treating the area as a hunting ground.
Donald Trump assails judge and his daughter after gag order in N.Y. hush-money criminal case
Donald Trump lashed out Wednesday at the New York judge who put him under a gag order that bars him from commenting publicly about witnesses, prosecutors, court staff and jurors in his upcoming hush-money criminal trial.
Families shocked after Niagara Falls hotel cancels bookings made year in advance of solar eclipse
After having the foresight to book their Niagara Falls hotel rooms more than a year in advance, several families planning to take in the solar eclipse next month were shocked to find out their reservations had been cancelled.
B.C. rescuers face 'high likelihood' of failure to reunite orphaned orca with pod
The race to reunite an orphaned orca calf that’s stuck in a shallow lagoon with a neighbouring pod has entered its fifth day, and a marine scientist says the clock is ticking.
Video shows police interrupting auto theft in progress outside Toronto home
New video footage obtained by CP24 shows the attempted theft of a vehicle in a North York driveway earlier this month that was ultimately interrupted by police.
Majority of Canadians believe in life after death: Angus Reid survey
A new survey from the Angus Reid Institute has found that a majority of Canadians believe in some form of life after death, a proportion that has held steady for decades.
MyPillow, owned by U.S. election denier Mike Lindell, formally evicted from Minnesota warehouse
A court ordered the eviction Wednesday of MyPillow from a suburban Minneapolis warehouse that it formerly used.