By Joe Hoppe
BHP Group PLC said Tuesday that it has made a recommended all-cash offer to acquire all of the outstanding and issued share capital of Noront Resources Ltd. for a total equity value of 325 million Canadian dollars ($259.1 million).
The Anglo-Australian multinational miner said it and its subsidiaries have entered into a definitive support agreement with Canadian-based mining company Noront, which has agreed to support the takeover bid. Noront is focused on developing its nickel, copper, platinum, palladium and chromite deposits in Ontario.
BHP offered to pay 55 Canadian cents a share for Noront, a 69% premium to the company's closing price on Monday. Noront board members who voted on the matter unanimously recommended shareholders accept the offer, BHP said.
BHP Lonsdale already owns 3.7% of Noront shares on a fully diluted basis.
"For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," BHP Chief Development Officer, Johan van Jaarsveld said.
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(END) Dow Jones Newswires