Wyloo extends deadline for Mincor takeover bid

Andrew Forrest’s Wyloo Metals said on Wednesday it was extending its takeover offer for Australian nickel explorer Mincor Resources (ASX: MCR) until the close of trading on the Australian stock exchange on May 22.

Privately-held Wyloo launched in March a bid to acquire the Australian junior in which it offered A$1.40 per share of Mincor, a 35% premium on the closing price previous to the offer. The deal values the company at A$760 million ($510 million) on a fully diluted basis.

Before the takeover bid, declared by Wyloo last month as “best and final”, the miner owned a nearly 20% stake in Mincor. Since then, Wyloo has tightened its grip on the target, reaching a 61.64% ownership as of Tuesday.

As most top miners, Wyloo Metals wants to secure a steady supply of metals considered critical for a greener economy, such as nickel, copper and platinum group metals.

Mincor’s nickel operations are centred in the Kambalda district of Western Australia. Its Kambalda nickel operations currently comprise the flagship Cassini nickel mine, a greenfields discovery located to the south, and the northern operations, which comprise the Long and Otter Juan/Durkin North mines.

Mincor combines ore from both its northern and southern operations to deliver a blended product to BHP’s nearby Kambalda nickel concentrator. 

Mincor reiterated its recommendation to shareholders to accept Wyloo’s bid.