Talks between Australian mining companies BHP and rival Wyloo have ended as the companies compete to purchase Noront.
Discussions over whether Wyloo would support BHP’s offer of C$0.75 per share today came to an end the world’s largest listed miner confirmed. Wyloo has upped its offer for the Canadian-based mining company Noront to C$1.10 a share, 47 per cent higher than BHP’s as competition heats up.
While Wyloo, which already has a 37 per cent stake in Noront, has given the company a value of C$616.9m with its latest offer BHP still encouraged shareholders to accept its latest bid.
“BHP Lonsdale and Noront encourage Noront shareholders to tender to BHP Lonsdale’s all-cash offer of C$0.75 per share,” said BHP in a statement. “The Offer is the only offer available to Noront shareholders and it continues to have the support and recommendation of the Board of Directors.”
BHP requires the support of 50 per cent of the company’s shareholders and has already secured support from Noront’s board.
Shareholders have until a deadline of 7:00pm Toronto time on 14 January to accept BHP’s offer.
At the heart of the animosity between BHP and Wyloo is competition to own Canada’s ‘Ring of Fire’ an emerging multi-metals area located in the James Bay Lowlands of Northern Ontario which the Canadian mining company has access to.