Wyloo tightens grip on nickel explorer Mincor

Wyloo Metals Pty Ltd., a privately-held mining company owned by Australian billionaire Andrew Forrest, has secured control of nickel and gold explorer Mincor Resources (ASX: MCR) by locking a 51.24% interest.

The company launched in March a bid to acquire the Australian junior in which it offered A$1.40 per share of Mincor, a 35% premium on the closing price previous to the offer. The deal values the company at A$760 million ($510 million) on a fully diluted basis.

Before the takeover offer, Wyloo already owned a nearly 20% stake in Mincor,

Under the offer, declared by Wyloo earlier this month as “best and final”, Mincor shareholders can also sell their shares to Wyloo directly on-market, without conditions, rather than wait for board approval of the deal.

The Australian major’s current shareholding in the takeover target allows it to control the composition of the board, Mincor said on Monday.

As most top miners, Wyloo Metals wants to secure a steady supply of metals considered critical for a greener economy, such as nickel, copper and platinum group metals.

Mincor’s nickel operations are centred on the Kambalda district of Western Australia. Its Kambalda nickel operations currently comprise the flagship Cassini nickel mine, a greenfields discovery located to the south, and the northern operations, which comprise the Long and Otter Juan/Durkin North mines.

Mincor combines ore from both its northern and southern operations to deliver a blended product to BHP’s nearby Kambalda nickel concentrator. 

Forrest is the founder and chairman of Fortescue Metals Group (ASX: FMG), the world’s fourth-largest iron ore miner.

Mincor reiterated its recommendation to shareholders to accept Wyloo’s bid, which is scheduled to close on May 8.