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Ring of Fire talks between BHP, Wyloo to extend into 2022

Discussions 'progressing' to acquire James Bay nickel, chromite property
Noront drill core 5
(Noront Resources photo)

The negotiations to determine what mining company will eventually own Noront Resources' metals assets in the James Bay region will be extended into the new year.

In a Dec. 3 news release, BHP said it's "progressing discussions" with Wyloo Metals to reach an agreement whereby Wyloo supports BHP’s C$0.75 per share offer to acquire Noront.

Late last month, BHP announced it was extending the expiry of its offer from Nov. 30 to Dec. 14. Last week, BHP indicated it's now pushing the date out to Jan. 22, 2022.

The earliest time BHP will be taking up Noront shares under its offer will be at that new expiry time of 7 p.m. EST.

BHP said a "mutually beneficial agreement" is being considered with Wyloo regarding the acquisition of Noront by BHP, but there is no assurance that will happen.

Both Australian companies got into a bidding war in August and September to acquire the Noront's prized Eagle's Nest nickel, copper and platinum group metal deposit, along with three high-grade chromite deposits in the James Bay region.

Wyloo, a subsidiary company of Tattarang, Australia's largest investment fund, is a 37-per-cent shareholder in Noront.

BHP is the world's biggest mining company with operations in Australia, Chile, the U.S, and Canada, including potash operations in Saskatchewan.

Toronto's Noront is siding with the BHP offer.

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