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
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
All Alberta wildfires to date in 2024 believed to be human-caused: province
There are 63 wildfires burning in Alberta's forest protection area as of Wednesday morning and seven mutual aid fires, including one in the Municipal District of Peace.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Suspects waving weapons, smashing glass in Toronto jewelry store robbery caught on video
Arrests have been made after five men were captured on video rampaging through a jewelry store in Toronto, waving weapons and smashing glass display cases.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
New evidence challenges the Pentagon's account of a horrific attack as the U.S. withdrew from Afghanistan: CNN exclusive
New video evidence uncovered by CNN significantly undermines two Pentagon investigations into an ISIS-K suicide attack outside Kabul airport, during the American withdrawal from Afghanistan in 2021.