Noront Resources is recommending shareholders accept an offer of $258-million in cash from Australian mining giant BHP Group.
A statement from Noront CEO Alan Coutts says the transaction with BHP is significantly better than an offer from another Australian company earlier this year.
Wyloo Minerals, Noront’s biggest shareholder, offered $144-million in late May.
Noront has ownership or controlling interest in all of the major discoveries in the Ring of Fire mineral belt in the James Bay Lowlands.
Coutts believes it would be a good move for its Eagle’s Nest Deposit nickel, copper, and platinum project and the Ring of Fire.
“BHP has the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle’s Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come,” Coutts adds.
Shareholders will have 105 days to decide once BHP officially submits its bid to them.
