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BHP Billiton and Wyloo search for Noront deal

Kitco News

BHP Billiton and Wyloo Metals said today that talks continue regarding the Noront Resouruces (TSXV:NOT) acquisition.

The number one diversified miner, BHP Billiton, and mining billionaire Andrew Forrest's Wyloo have made escalating bids for Noront, which is advancing its Eagle’s Nest nickel, copper, platinum and palladium deposit located in the James Bay Lowlands of Ontario known as the Ring of Fire. The bidding kicked off in the spring.

Talks have been extended to mid-December. BHP Billiton current bid is set at 75 cents a share.

"While BHP and Wyloo Metals 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," wrote Noront in a news release.

In May Australian mining magnate Andrew Forrest's Wyloo Metals launched an unsolicited bid at around C$0.315 per share for Noront Resources, an offer valuing the Canadian miner at C$133 million. Noront's board said Wyloo's deal under valued the company.

In March BHP announced it was focusing on exploration in Canada with an emphasis on battery metals needed for energy transition. BHP announced it was setting up an office in Toronto.

BHP has 80,000 employees. Earlier this year, BHP approved US$5.7 billion in investment for its Jansen project, a planned potash mine in Saskatchewan.

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