Takeover of Noront Resources approved | The Star

https://www.thestar.com/news/canada/2022/03/18/takeover-of-noront-resources-approved.html

Takeover of Noront Resources approved

The deal is set to close by April 7, Noront said.

It’s not yet clear what the new company will be named. CR

Fri., March 18, 2022

Northern Ontario — An Australian company’s bid to take control of what are believed to be large nickel and chromite deposits in the Ring of Fire mineral belt has been accepted by shareholders.

Toronto-based Noront Resources reported late Tuesday that its shareholders “overwhelmingly” voted this week in favour of a bid of $1.10 per share, that had been put forward by Wyloo Metals.

Just over 66 per cent of shareholders who voted had to be in favour of the proposal before it could become effective.

The deal is set to close by April 7, Noront said.

It’s not yet clear what the new company will be named.

Wyloo’s final offer came in December following a prolonged bidding war with a rival Australian company — oil, mining and gas giant BHP.

For several years, Noront has been positioning itself to build the first nickel mine in the Ring of Fire located about 550 kilometres northeast of Thunder Bay. The mining of chromite — a main ingredient in stainless steel — was to follow at adjacent deposits.

When Noront found it could no longer finance the projects, it initially recommended its shareholders accept a takeover proposal by BHP.

Wyloo, which already owned a substantial amount of Noront shares, countered with higher offers after it was unable to reach a mutual agreement with BHP.

Mining development in the Ring of Fire isn’t expected to occur until after all-season roads or a rail route have been established for transporting ore.