Forrest’s Wyloo Metals plans takeover offer for Noront

Mining billionaire Andrew Forrest’s Wyloo Metals announced on Tuesday that it intended to make an offer for Noront Resources.

The offer would value the Canadian nickel project developer at $133 million.

The offer is a 31% premium based on the closing price of 24 cents for Noront shares on the TSX Venture Exchange on Friday.

Noront says its board of directors has formed a special committee including three independent directors to review the proposal.

Wyloo currently holds approximately 23% of the outstanding common shares of Noront.

Noront has ownership or a controlling interest of all the major discoveries in the Ring of Fire, an emerging multi-metals area located in the James Bay Lowlands of Northern Ontario. 

The company’s flagship project is a 100%-owned, high-grade, nickel, copper and platinum group element (PGE) deposit called Eagle’s Nest.

It is the largest high-grade nickel discovery in Canada since Voisey’s Bay.

Midday Tuesday, Noront’s stock was up 31% on the TSXV. The company has a $132-million market capitalization.

The original article originally appeared www.MINING.com.