TORONTO — The board of Noront Resources Ltd. is backing a sweetened takeover offer from BHP, which raised its bid for the company after it was set to accept a rival offer from Wyloo Metals Pty Ltd.
BHP raised its offer to 75 cents per share from an earlier proposal of 55 cents after Noront ruled Wyloo's bid of 70 cents per share was a superior proposal.
However, Noront now says it believes the increased BHP offer provides shareholders with the value inherent in its portfolio without the long-term risks associated with the development and execution of those projects.
Noront is developing several projects in the Ring of Fire region in northern Ontario.
The company says at least 50 per cent of shares not owned by BHP must be tendered to the offer, adding that if shareholders other than Wyloo tender their shares that the offer will succeed.
Wyloo, which owns a 37.25 per cent stake in Noront, had rejected BHPs earlier offer.
This report by The Canadian Press was first published Oct. 20, 2021.
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The Canadian Press