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 $133 million.
The offer is a 31% premium based on the closing price of 24 cents for Noront shares on the TSX Venture Exchange on Friday.
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 flagship 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 $132-million market capitalization.
The original article originally appeared www.MINING.com.