Noront reiterates support of BHP offer, says Wyloo declined to execute confidentiality agreement
(Kitco News) - Noront Resources (TSXV: NOT) today responded to the statement issued by Wyloo Metals yesterday, in order to clarify several of Wyloo's "misleading" statements relating to the proposed acquisition of Noront by BHP.
In its statement, Noront said it reiterates its support of BHP's offer to acquire the shares of Noront (the "Offer") and the recommendation of its Board that shareholders tender their shares and accept the Offer.
In relation to Wyloo's statement that it did not get access to the due diligence information, Noront pointed out that prior to the Offer, the company engaged fully and provided access to due diligence information to all parties that were prepared to enter into a customary confidentiality agreement typical for transactions of this nature.
Therefore, the company noted that Wyloo was provided an opportunity to execute such a confidentiality agreement (which was consistent with the confidentiality agreement that was executed by BHP) and have access to due diligence information, and Wyloo declined to do so.
The company said that if Wyloo remains interested in engaging with Noront, the support agreement entered into between Noront and BHP contains customary terms that permit the company to engage with, and provide confidential information to, a party that makes a proposal to the company that is superior to the Offer or would reasonably be expected to lead to a superior proposal. Noront said that to date, the company has received no such proposals.
Noront added that the company sought to provide shareholders with a superior alternative to the $0.315 per share price proposed by Wyloo, which led to the all-cash Offer by BHP at a significantly higher price per Noront share.
The Offer price of C$0.55 per Noront share, which represents a premium of 129% to Noront's unaffected closing price of C$0.24 on May 21, 2021, is 75% higher than the C$0.315 per share proposed by Wyloo in its announcement on May 25, 2021.
Noront Resources is focused on the development of its high-grade Eagle's Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.