Ring of Fire Updates Uncategorized Weekly News Roundup

August 31-September 6, 2021: Weekly News Roundup

Two Australian mining giants continue their bidding war to take over Noront Resources. BHP – the world’s largest mining company – and Wyloo, owned by Andrew “Twiggy” Forrest – one of Australia’s wealthiest people – are fighting over who will gain access to what they see as the ‘lucrative’ Eagle’s Nest mine project, currently owned by Noront.

It is clear that this bidding war is sweetened by the mine’s location in Canada – or, what one Australian media outlet referred as “sovereign risk-free Canada” referring to the Harper era mining friendly laws that reduce taxes on companies and incentivize transnational investment. The war is also fueled by a decades-long ‘king of the sandbox’ style feud between BHP and ‘Twiggy.’

Since the feud began in May, Noront shares have been driven up by 200%. Noront indicated to shareholders that the BHP offer is the more secure of the two, given the non-binding nature of Wyloo’s bid – which includes waiting until the company can complete a due diligence process and the execution of what is called a definition arrangement agreement – also known as a stock purchase agreement between ‘buyer’ and ‘seller.’ Even if BHP were to win the bid, Wyloo – who controls 37.5% of Nortont’s shares – has stated that it would not ‘tender’ those shares to BHP, who only holds a 3.7% stake.

August 30, 2021 (Globe and Mail):

Wyloo hikes approach for Ring of Fire explorer Noront Resources

“Wyloo Metals Pty Ltd. has bumped up its offer for Noront Resources Ltd., trumping BHP Group Ltd.’s bid, and in a highly unusual move is proposing to keep the struggling Ring of Fire exploration company as a publicly traded entity.” Read more here…

August 31, 2021 (The Age):

Forrest and BHP go to war over a company no one has ever heard of

“BHP versus Andrew Forrest was once a David and Goliath fight confined to the Pilbara. Today the battle between the two titans of iron ore, has moved to the far reaches of Northern Canada and the quarry they both seek is a nickel company no one has ever heard of.” Read more here…

August 31, 2021 (Brisbane Times):

Battery blitz: ‘Twiggy’ Forrest fights BHP for Canadian nickel miner

“Mining billionaire Andrew “Twiggy” Forrest has raised the stakes in a race with BHP to acquire Canadian nickel explorer Noront as demand for electric battery raw materials intensifies.

Wyloo Metals, wholly owned by Dr Forrest’s investment vehicle Tattarang, on Tuesday said it was seeking to outbid Australian mining giant BHP’s takeover of $C325 million ($353 million) for control of the company.” Read more here…

August 31, 2021 (Globe and Mail):

Ring of Fire operator Noront recommends BHP offer over Wyloo Metals approach

“Ring of Fire operator Noront Resources Ltd. is recommending its shareholders accept BHP Group Ltd.’s increase takeover offer, effectively spurning a higher per-share proposal from another Australian mining industry heavyweight, Wyloo Metals Pty Ltd.” Read more here…

August 31, 2021 (Times Colonist):

Noront board maintains support for BHP bid despite richer Wyloo proposal

“The board of Noront Resources Ltd. is maintaining its support for a takeover offer for the company by BHP, despite a richer proposal by Wyloo Metals Pty Ltd.

The company says the proposed offer by Wyloo of 70 cents per share is a non-binding proposal to the Noront board and that the only binding offer is BHP’s bid of 55 cents per share.” Read more here…

August 31, 2021 (Regina Leader Post):

Mining magnate Andrew Forrest trumps BHP in duel for nickel miner Noront

Noront continues to support BHP’s offer and called Forrest’s approach ‘a non-binding proposal’ that is ‘not an offer’

“Andrew Forrest, the billionaire founder of iron ore giant Fortescue Metals Group Ltd., upped his bid to acquire a nickel miner active in Canada’s highly-prospective Ring of Fire region to trump an offer from BHP Group.” Read more here…

September 1, 2021 (Sharecafe):

BHP, Fortescue’s Forrest in Canadian Standoff

“BHP has repeated its determination to take over Canadian nickel explorer Noront Resources, despite a mooted higher offer from Wyloo Metals, one of the stockmarket vehicles of Fortescue Metals chair, Andrew “Twiggy” Forrest.

Wyloo Metals has indicated is prepared to offer 70 cents Canadian for Noront which controls some major prospects for copper, nickel and cobalt in the James Bay area of Northern Ontario in the so-called Ring of Fire region. (Wyloo owns 37.5% of the company bought on market late in 2020 and earlier this year) and top BHP’s 70 cents C a share offer.” Read more here…

August 2, 2021 (Hellenic Shipping News):

BHP brawl tips why nickel will cost pretty penny

“The last thing BHP boss Mike Henry needs is a fight. He has just unveiled sweeping and complicated plans to reshape the $164 billion miner as the price for the company’s prized iron ore tumbles. Now his agreed deal to buy Canada’s Noront Resources is running into stiff competition from scrappy minerals magnate Andrew Forrest. It’s a fresh sign of just how difficult it will be to push into hot commodities.” Read more here…

%d bloggers like this: