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
Spectacular aurora light show to be seen across Canada Friday night
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
'Tactical evacuations' underway near Fort Nelson, B.C., as wildfires encroach
The BC Wildfire Service says 'tactical evacuations' began Friday near Fort Nelson, B.C., due to an out-of-control wildfire that has grown rapidly since it was discovered earlier in the afternoon.
Snowbirds in Vancouver for puck-drop flyby as Canucks face Oilers
The Canadian Forces Snowbirds will be performing a flyover across downtown Vancouver at the start of tonight's Stanley Cup playoff game between the Canucks and the Edmonton Oilers.
McGill University seeks emergency injunction to dismantle pro-Palestinian encampment
McGill University has filed a request for an injunction to have the pro-Palestinian encampment removed from its campus.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
Video shows naked raccoon catching B.C. family by surprise
When Marvin Henschel spotted a strange and hairless creature wandering through a front lawn in B.C.'s Lower Mainland, he could barely believe his eyes.
Barron Trump declines to serve as an RNC delegate
Former U.S. President Donald Trump's youngest son, Barron Trump, has declined to serve as a delegate at this summer’s Republican National Convention, according to a senior Trump campaign adviser and a statement from Melania Trump's office.
Out-of-control wildfire prompts evacuation alert for Fort McMurray, Saprae Creek Estates Friday night
An evacuation alert was issued for two Wood Buffalo communities Friday night, as crews battled an out-of-control wildfire near Fort McMurray.