Noront says Wyloo bid 'may never materialize'
(Kitco News) - Noront Resources (TSXV: NOT), the Canadian-based resource developer and explorer, which is to develop the first mine in the Ring of Fire, clarified today that Wyloo Metals, owned by Australian mining magnate Andrew Forrest, has not yet commenced a take-over bid and such a bid “may never materialize”.
As previously announced, on May 25, 2021, Wyloo Metals, a holder of approximately 23% of Noront's outstanding common shares, announced its intention to make an offer to acquire all of the outstanding common shares that it does not already own.
According to Noront, Wyloo Metals is not permitted to commence a take-over bid until a formal valuation of Noront is completed by an independent valuator, which may take several weeks to complete. Should Wyloo Metals proceed with a take-over bid, the Board of Directors of Noront will carefully review such offer and provide a recommendation to its shareholders, the company added.
Additionally, the company has also announced its intention to complete a private placement financing to raise gross proceeds of approximately $6.1 million. The company said it has an immediate need for funding and intends to use the net proceeds of the private placement to address its near-term working capital commitments, with any remaining funds to be used to advance the development of its portfolio of properties and associated activities located in the Ring of Fire.
Noront is focused on development of its high-grade Eagle's Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.