BHP suffers defeat, loses Noront Resources
Melbourne, Victoria – BHP Lonsdale Investments, a wholly owned subsidiary of BHP, has announced that it will not increase or extend its offer for Noront Resources.
BHP Chief Development Officer, Johan van Jaarsveld, said: “BHP is committed to its strict capital discipline framework. While the Eagle’s Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP’s offer in order to match the C$1.10 per share proposal from Wyloo Metals Pty Ltd.”
The Noront board of directors has determined that the proposal from Wyloo Metals to acquire up to 100% of the shares of Noront for C$1.10 in cash per share is a “superior proposal” under the support agreement between Noront, BHP Lonsdale and BHP Western Mining Resources International, and as a result BHP Lonsdale has a right to match Wyloo’s proposal. BHP Lonsdale has determined it will not match Wyloo’s proposal.
BHP has a strong track record of mining development and investment in Canada over several decades. It has invested in diamonds, potash, exploration, Carbon Capture and Storage (CCS) research, and in environmental preservation through the BHP Foundation in Canada’s boreal forest.
