BHP tables all-cash bid for Canada's Noront Resources
BHP looked to have beat out Australian magnate Andrew Forrest in taking control of Canada's Noront Resources.
In particular, BHP was looking to expand its access to nickel, a key metal in the production of lithium-ion batteries for electric vehicles.
BHP chief development officer, Johan van Jaarsveld, said: "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."
The recommended all-cash CAD325m or CAD0.55 per share offer was made at a 69% premium to the shares' closing price the day before on the Toronto Stock Exchange.
BHP now needed acceptance from 50% or more of Noront's common shares in order for the transaction to proceed.
It had already obtained that of 9.9%, consisting of shares held by Noront's directors, senior management and a major shareholder, and owned another 3.7%.
In May, Forrest's Wyloo Metals said it intended to table an offer for Noront.
Noront was the owner of the high-grade Eagle's Nest nickel, copper, platinum and palladium deposit.
The company also posessed chromite deposits including Blackbird, Black Thor, and Big Daddy with all the deposits located in the James Bay Lowlands of Ontario.