Noront Resources has announced that BHP Billiton made an all-cash offer for Noront. Noront is a Canadian-based mining company that has the largest land position in the Ring of Fire.
In March, BHP announced it was focusing on exploration in Canada with an emphasis on battery metals needed for the energy transition. The company set up an office in Toronto.
Noront’s Eagle’s Nest project is a nickel, copper and platinum group element (PGE) deposit. The company said it is the largest high-grade nickel discovery in Canada since Voisey’s Bay and the most advanced project in the Ring of Fire.
The offer, which is supported by Noront’s board, is C$0.55 per share represents a 69% premium to Noront’s closing price on the last trading day prior to announcing this transaction, according to a Noront news release.
BHP Chief Development Officer, Johan van Jaarsveld, said the deal is a win-win.
“We are pleased that the Noront board has seen the value in our offer and has recommended it to its shareholders. This is a win-win for both BHP and Noront shareholders. For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity. The highly prospective Eagle’s Nest nickel project provides an excellent platform from which to develop further opportunities in Ontario’s Ring of Fire. For Noront shareholders, this offer recognizes and realizes the full value of Noront’s portfolio, delivering guaranteed shareholder returns in the near term. We are excited to bring our mining expertise and capabilities to develop these long-term opportunities. We look forward to working in constructive partnerships with First Nations peoples, government and communities to realize the untapped potential of these important resources,” said van Jaarsveld.