In a statement, Noront said the offer is greater than BHP offers C $ 0.55 per share and represents better value for shareholders.
If the deal goes through, current shareholders can sell their shares at 70 cents each, or keep them and continue as common shareholders.
Noront CEO Alan Coutts said the company’s board of directors has determined that Wyloo’s offer is superior.
“Based on an assessment by the Special Committee and its advisers, Noront’s board of directors has determined that the Wyloo Metals proposal represents superior value to our shareholders, compared to the BHP offer,” said Coutts said in the release.
However, BHP has the right to match the offer within five days. If the company decides not to match, Wyloo Metals will loan Noront $ 23 million to fund, among other things, $ 13 million payable to BHP for ending its takeover offer for the company.
Currently, Wyloo currently owns approximately 37.25% of Noront’s common stock.
Noront is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and world-class chromite deposits including Blackbird, Black Thor and Big Daddy, all located in the lowlands of James Bay in Ontario, into an emerging metals camp known as the Ring of Fire.
Noront has announced its intention to build a chromite smelter in Sault Ste. Married.