Noront reaches takeover deal with Wyloo Metals, says bid superior to BHP offer

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

TORONTO — Noront Resources Ltd. says it has agreed to a takeover offer by Wyloo Metals Pty Ltd., putting aside a deal it signed to be acquired by BHP.

The company says Wyloo will pay 70 cents per share compared with the 55 cents per share that had been agreed to under the BHP offer.

Noront is developing several projects in the Ring of Fire region in northern Ontario.

The BHP offer required more than 50 per cent of the Noront shares not owned by BHP to be tendered to its bid. However Wyloo, which owns a 37.25 per cent stake in Noront, said it would not support BHP’s offer.

Under the Wyloo offer, Noront shareholders have the option to tender all or a portion of their shares. Shareholders who choose to keep their shares will continue as shareholders in the company going forward.

BHP has five business days to match Wyloo’s offer.

Companies in this story: (TSXV:NOT)