HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Message: BHP beats Forrest in takeover battle for prized nickel project
The BHP bid for Noront Resources unveiled on Tuesday night trumps a takeover offer lobbed by Dr Forrest’s privately-owned Wyloo Metals in May.
How Dr Forrest will react to the BHP raising the takeover stakes by a substantial premium remains unclear, with Wyloo controlling about 37 per cent of Noront stock.
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We know from that Forrest interview that he has a grudge with BHP....could be interesting.
ttps://www.afr.com/companies/mining/bhp-beats-forrest-in-takeover-battle-for-prized-nickel-project-20210727-p58di4
BHP beats Forrest in takeover battle for prized nickel project
Brad ThompsonReporter
Jul 27, 2021 – 11.35pm
BHP beats Forrest in takeover battle for prized nickel project
Dr Forrest and BHP are both targeting Noront’s highly rated Eagle’s Nest nickel project that sits in the Ring of Fire, an emerging multi-metals region in the James Bay Lowlands of Northern Ontario where Noront has several assets.
BHP chief development officer Johan van Jaarsveld said the acquisition of Noront represented a “world-class growth option” in Canada, where the mining giant is also giving every indication that it intends to build the Jansen potash mine in Saskatchewan at a cost of up to $US5.7 billion ($7.4 billion).
The Noront board has recommended shareholders accept BHP’s cash offer of C55¢ (59.4¢) a share which represents a 129 per cent premium to Noront’s last closing price before Wyloo launched its takeover bid in May.
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The BHP offer is at a 69 per cent premium to Noront’s closing price on Monday, the last trading day before the bid was announced to the Toronto Stock Exchange.
BHP, which currently owns 3.7 per cent of Noront, last week announced a deal to supply Elon Musk’s Tesla from its resurgent Nickel West business in Western Australia as part of a future in battery metals.
Dr Forrest, who made his fortune with Fortescue Metals Group after taking on BHP in iron ore in WA, grabbed an initial stake in Noront late last year.
The BHP bid values Noront at $C325 million ($351 million) and represents a 75 per cent premium on the Wyloo offer of C31.5¢ a share announced to the market May 25.
“This transaction provides a significant premium to Wyloo’s indicative offer, and crystallises immediate and certain value through an all-cash offer,” Noront chief executive Alan Coutts said.
“After careful consideration, Noront’s board of directors, with input from its financial and legal advisors and the special committee, determined 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.”
Mr van Jaarsveld said the acquisition was “win-win” for BHP and Noront shareholders.
“For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity,” he said.
“The highly prospective Eagle’s Nest nickel project provides an excellent platform from which to develop further opportunities in Ontario’s Ring of Fire.
“For Noront shareholders, this offer recognises and realises the full value of Noront’s portfolio, delivering guaranteed shareholder returns in the near term.
“We are excited to bring our mining expertise and capabilities to develop these long-term opportunities. We look forward to working in constructive partnerships with First Nations peoples, government and communities to realise the untapped potential of these important resources.”
Eagle’s Nest is Canada’s highest grade nickel discovery since Vale-owned Voisey’s Bay. The Province of Ontario has indicted it is willing to contribute up to $C1 billion to infrastructure development in the Ring of Fire region.
In May, Wyloo boss Luca Giacovazzi said its takeover bid for Noront was part of a long-term commitment to invest in developing the Noront assets and the Ring of Fire region.
“Wyloo Metals’ ambition is to produce the metals needed for a truly sustainable future and we believe the Ring of Fire can play a long-term and strategic role in helping us realise this,” he said.
Wyloo, which sits within the Forrest family’s private investment arm Tattarang, secured its 37 per cent stake in Noront for just $US26.5 million ($35.95 million) last December through a deal with Resource Capital Fund.
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