(Alliance News) - London-based resource company BHP Group PLC on Tuesday said its wholly-owned subsidiary, BHP Western Mining Resources International Pty Ltd, has made a recommended all-cash offer to acquire Noront Resources Ltd for CAD0.55 per share.
Noront is a Canadian mining company, listed on the TSX Venture Exchange.
The CAD0.55 price represents a 69% premium to Noront's closing price on Monday, the last trading day prior to the announcement of the deal.
The total equity value of the transaction is CAD325 million, about USD259 million.
"Noront represents a growth opportunity in a prospective nickel basin capable of delivering a scalable, new nickel-sulphide district and provides the BHP group with more growth options in future facing commodities," the company said.
BHP added: "With proven expertise and capabilities in both exploration and bringing complex base metals projects into production, the BHP group is well positioned to advance Noront's Ring of Fire projects through the next stages of development."
Shares in BHP Group were down 1.0% to 2,304.00 pence each in London on Tuesday afternoon, while the shares were 0.7% lower in Johannesburg at ZAR471.70.
By Amrit Sahota; newsroom@alliancenews.com
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