Mining billionaire Andrew Forrest’s Wyloo Metals announced on Tuesday that it intended to make an offer for Noront Resources.
The offer would value the Canadian nickel project developer at C$133 million.
Noront says its board of directors has formed a special committee, including three independent directors to review the proposal.
Wyloo currently holds approximately 23% of the outstanding common shares of Noront.
Noront has ownership or a controlling interest of all the major discoveries in the Ring of Fire, an emerging multi-metals area located in the James Bay Lowlands of Northern Ontario.
The company’s first project is a 100%-owned, high-grade, nickel, copper and platinum group element (PGE) deposit called Eagle’s Nest.
It is the largest high-grade nickel discovery in Canada since Voisey’s Bay.
Midday Tuesday, Noront’s stock was up 31% on the TSXV. The company has a C$132 million market capitalization.
Comments
Manfred Link
A good long term prospect identified some years ago. Cliffs sold their chrome deposits, valued in the billions, to Noront when their newly appointed CEO ( 2013/14) decided that this investment by Cliffs Natural resources was a waste of time.
Good luck to Andrew Forest. He, no doubt in my mind will benefit from his long term view on this highly valued mineral resource.
for t