Bidding war: BHP raises its offer in takeover bid for Noront
A day after a rival suitor made a bid for control of Noront Resources, BHP has upped its offer for shares of the mining company that owns the rights to mineral in the Ring of Fire in northwestern Ontario.
BHP increased its all-cash offer to Noront shareholders to $0.75 per share, beating Australia's Wyloo Metals' offer of $0.70 a share, which was announced Tuesday.
The BHP offer will be open until 11:59 p.m. (Toronto time) on Nov. 9. Shareholders have 22 days to decide whether to accept.
"Our increased offer of C$0.75 per share provides a compelling premium for Noront shareholders and is available to shareholders now," BHP chief development officer, Johan van Jaarsveld, said in a news release Wednesday.
"Our offer provides shareholders with the value inherent in Noront’s portfolio of projects, including the Eagle’s Nest project, delivering shareholders who accept our offer certainty of value and immediate liquidity.”
"BHP recognizes that delivering Noront’s portfolio of projects in the Ring of Fire is expected to take many years, require significant capital investment, development of remote infrastructure, and management of numerous stakeholders," the release said.
"There is no certainty that shareholders remaining invested in Noront will ever realize the value for their shares offered by BHP in cash today."
Noront CEO Alan Coutts, said in the release that the BHP offer is superior to Wyloo's.
"Noront’s board of directors determined that BHP’s improved offer is in the best interests of the company and its shareholders and recommends Noront shareholders tender their shares to the BHP offer,” Coutts said.
“Now is the time for shareholders to decide if they want to tender to our improved offer and crystallize the compelling and full value it represents,” van Jaarsveld said.
Noront Resources Ltd. is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and chromite deposits, including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.
BHP is an Australian-based global resources company with 80,000 employees and contractors, primarily in Australia and the Americas. The company has its potash head office is in Saskatoon and its head office for metals exploration is in Toronto.
CTVNews.ca Top Stories
Freeland leaves capital gains tax change out of coming budget implementation bill, here's why
Deputy Prime Minister and Finance Minister Chrystia Freeland will be tabling yet another omnibus bill to pass a sweeping range of measures promised in her April 16 federal budget, though left out of the legislation will be the government's proposed capital gains tax change.
Ontario woman surprised after 20-year-old fines suddenly tank credit score
An Ontario woman says that she was shocked when provincial fines from 20 years ago suddenly tanked her credit score last week, but the situation may not be as unusual as it seems, according to at least one debt expert.
Anger can harm your blood vessel function, study shows
Stress and anger can have a negative impact on cardiovascular health, studies have shown. New research points to just how the mechanism may work.
Avalanche eliminate Winnipeg Jets from playoffs with 6-3 road win
Mikko Rantanen's first two goals of the playoffs propelled the Colorado Avalanche to a 6-3 victory over the Winnipeg Jets on Tuesday that clinched their opening-round playoff series in five games.
Protesters clash at UCLA after police clear pro-Palestinian demonstrators from Columbia University
Dueling groups of protesters clashed Wednesday at the University of California, Los Angeles, grappling in fistfights and shoving, kicking and using sticks to beat one another. Hours earlier, police carrying riot shields burst into a building at Columbia University that pro-Palestinian protesters took over and broke up a demonstration that had paralyzed the school while inspiring others.
Will an 'out of sight, out of mind' cellphone policy make a difference in Ontario schools?
Ontario’s cellphone ban in schools has been met with mixed reaction, with some teachers concerned about constant policing of kids and experts applauding the change as necessary for student learning.
WATCH Arnold Schwarzenegger spotted filming in Elora, Ont.
The name of the project has not been officially released although it’s widely believed to be the Netflix series FUBAR.
Poilievre kicked out of Commons after calling Prime Minister Justin Trudeau 'wacko'
Testy exchanges between the prime minister and his chief opponent ended with the Opposition leader and one of his MPs being ejected from the House of Commons on Tuesday -- and the rest of Conservative caucus walking out of the chamber in protest.
National strategy must recognize caregivers as 'backbone' of society: centre
Canadians need help looking after family members who are aging, sick or have disabilities, and many caregivers are seniors who need help themselves, says a new report calling for a national strategy that recognizes the mental and financial toll of the job.