Forrest’s Wyloo Metals plans takeover offer for Noront Resources, stock surges

Noront Resources Esker camp. (Credit: Noront)

Mining billionaire Andrew Forrest’s Wyloo Metals announced on Tuesday that it intended to make an offer for Noront Resources.

The offer would value the Canadian nickel project developer at C$133 million.

Noront says its board of directors has formed a special committee, including three independent directors to review the proposal.

Wyloo currently holds approximately 23% of the outstanding common shares of Noront.

Noront has ownership or a controlling interest of all the major discoveries in the Ring of Fire, an emerging multi-metals area located in the James Bay Lowlands of Northern Ontario. 

The company’s first project is a 100%-owned, high-grade, nickel, copper and platinum group element (PGE) deposit called Eagle’s Nest.

It is the largest high-grade nickel discovery in Canada since Voisey’s Bay.

Midday Tuesday, Noront’s stock was up 31% on the TSXV. The company has a C$132 million market capitalization.

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