BHP is talking to Andrew Forrest’s Wyloo Metals about their respective bids for Canadian explorer Noront Resources, which holds some of the most attractive prospects in the emerging Ring of Fire base metals province in northern Ontario in Canada.
In a statement released just after 6am Sydney time on Wednesday in Canada, BHP said that instead of the close of business on November 9 (next Tuesday), the bid deadline had been pushed out a week to November 16.
“To allow more time for those discussions to progress, BHP is extending the initial expiry of its offer from 11:59 p.m. (Toronto time) on November 9, 2021 to 7:00 p.m. (Toronto Time) on November 16, 2021. The earliest time BHP will be taking up Noront shares under its bid will be at the new expiry time,” BHP said.
In the brief statement BHP said “BHP Lonsdale Investments Pty Ltd wholly owned subsidiary of BHP, announced today that it is currently in discussions with Wyloo Metals Pty Ltd (“Wyloo Metals”) regarding its potential support of BHP’s $0.75 per share offer to acquire Noront Resources Ltd.”
“BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP.
“There is no assurance that any agreement will be reached between BHP and Wyloo Metals,” the statement added.
Wyloo holds a potential 37.5% stake in Noront, but the BHP bid is conditional on acceptances of 50.01%, so in theory Wyloo’s shares would not be needed.
BHP’s bid is 75 Canadian cents a share, while Wyloo has offered 70 Canadian cents.
