Forrest’s Wyloo Metals plans takeover offer for Noront

Noront is developing nickel, copper, chrome and platinum projects in Ontario's Ring of Fire region.
Noront Resources Esker Camp (Credit: Noront)
[caption id="attachment_1003748110" align="alignnone" width="604"]Forrest’s Wyloo Metals plans takeover offer for Noront Noront Resources Esker Camp (Credit: Noront)[/caption]

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.

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