(Adds details, context and background)
April 4 (Reuters) - Australian nickel miner Mincor
Resources recommended on Tuesday its shareholders vote
in favour of a A$750.3 million ($509.08 million) buyout bid from
Wyloo Metals, owned by Australian mining magnate Andrew Forrest.
A key attraction in Mincor is a nickel sulphide deposit
it is developing in Western Australia that would raise Wyloo's
exposure to the battery material and could feed a nickel
sulphate plant it is considering building with miner IGO .
The move comes as Australia builds out a critical minerals
processing industry to reap more value from the electric vehicle
battery chain.
Wyloo Metals said on Monday the A$1.40-per-share offer price
was declared as its "best and final". The offer stood at a 35%
premium to Mincor stock's last close on March 20, a day prior to
the deal announcement.
Last month, Mincor had advised shareholders to take no
action regarding the offer.
But the miner has since had to withdraw its production
forecast for fiscal 2023 after failing to secure an amendment to
its offtake agreement with BHP Group .
Shares of Mincor rose 0.4% by 0122 GMT on Tuesday.
Forrest, who built his fortune through his majority holding
in Fortescue Metals Group, the world's fourth-largest iron ore
miner, already owns nearly 20% of Mincor through his private
investment vehicles Wyloo and Tattarang.
($1 = 1.4738 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Sherry
Jacob-Phillips)
