(Alliance News) - BHP Group PLC on Wednesday said it is in discussions with Wyloo Metals Pty Ltd for a "mutually beneficial arrangement" as the duo vie to acquire Noront Resources Ltd.
BHP in October upped the ante in its bidding war with Wyloo, increasing its offer for Noront to CAD0.75 per share, from its original tilt of CAD0.55, and besting Wyloo's updated CAD0.70 bid made at the end of August. Wyloo first made an offer for Noront in May for CAD0.315 per share.
Noront shares closed 8.2% lower at CAD0.78 each on Wednesday in Toronto, giving the miner a market value of CAD438.4 million, about USD353.0 million.
BHP shares closed up 1.1% at AUD35.94 each in Sydney on Wednesday.
BHP said it is extending the initial expiry of its offer to November 16, from November 9.
In addition, it announced it is in talks with takeover rival Wyloo.
"BHP and Wyloo Metals have engaged in initial conversations and 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," the miner said.
Noront is focused on the development of its Eagle's Nest nickel, copper, platinum and palladium deposit, as well as chromite deposits located in the James Bay Lowlands of Ontario. It is listed on the TSX Venture Exchange.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
BHP Group (BHP)