Australian company Wyloo plans takeover offer for Ring of Fire developer Noront

Sault Ste. Marie's application to NORONT Resources Ltd. for a ferro-chrome smelting facility site, moving ahead to next step in process.

An Australian company says it plans to make a takeover offer for Ring of Fire developer Noront Resources Ltd. that values the Canadian company at about $133 million.

Wyloo Metals Pty Ltd. says it will offer 31.5 cents in cash for each Noront share that it does not already hold.

Noront is developing nickel, copper, chrome and platinum projects in Ontario’s Ring of Fire region.

The offer is a 31 per cent 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.

A Wyloo Metals Canadian subsidiary already owns nearly 98 million shares of Noront representing a 23 per cent stake. It also holds warrants for nearly 1.8 million Noront shares at an exercise price of 35 cents per share and a US$15-million loan convertible into Noront shares at a conversion price of 20 cents Canadian per share.

Companies in this story: (TSXV:NOT)