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
DEVELOPING Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
BREAKING Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
The Body Shop Canada explores sale as demand outpaces inventory: court filing
The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with "robust" sales after announcing it would file for creditor protection and close 33 stores.
Vicious attack on a dog ends with charges for northern Ont. suspect
Police in Sault Ste. Marie charged a 22-year-old man with animal cruelty following an attack on a dog Thursday morning.
On federal budget, Macklem says 'fiscal track has not changed significantly'
Bank of Canada governor Tiff Macklem says Canada's fiscal position has 'not changed significantly' following the release of the federal government's budget.