Noront affirms support for BHP offer
After Wyloo topped BHP Billiton's offer yesterday, Noront Resources (TSXV:NOT) is still affirming BHP's earlier bid.
Yesterday Wyloo Metals announced Monday it is prepared to top BHP Billiton and acquire Noront Resources' shares at a price of C$0.70 in cash per share. BHP's July bid, which was supported by Noront, was an all-cash offer of C$0.55 per share for Noront.
Today Noront posted a news release responding to Wyloo's new offer.
"The Board of Directors of Noront affirms its support of the BHP Offer and continues to recommend shareholders accept the BHP Offer," said the company in a news release.
"At this point, Wyloo’s publicly-announced interest in Noront is not an offer, rather it is a non-binding proposal to the Noront Board of Directors that is conditional on completion of due diligence by Wyloo and negotiation and execution of a definitive arrangement agreement. Wyloo has not entered into any binding agreement with Noront in respect of a proposed transaction, nor has it made a formal offer to the Company’s shareholders, and there can be no assurance that a transaction will crystalize from the Wyloo proposal."
"Pursuant to the Support Agreement, Noront is permitted to engage with, and provide confidential information to, Wyloo only if Wyloo executes a confidentiality agreement with Noront on terms no less favourable to Noront than the terms contained in Noront’s confidentiality agreement with BHP."
Noront is a Canadian-based mining company that has the largest land position in the Ring of Fire. Noront's Eagle's Nest project is a nickel, copper and platinum group element (PGE) deposit. The company said it is the largest high-grade nickel discovery in Canada since Voisey's Bay and the most advanced project in the Ring of Fire.