Noront resources Declines an offer of a $ 5 million loan from Australia Wyloo metals, which wants to take over the mine developer Ring of Fire.
In a June 4 press release, Noront admitted that it “has immediate funding needs,” but intends to take the funding route through a private placement to raise $ 6.1 million to keep the company going and on its own Exploration lots to work in the remote James Bay area.
Wyloo, headquartered in Perth and privately owned, a major mining investor and exploration company in Australia with global ambitions, came on board last October to become Noront’s largest shareholder at 23 percent. BaoSteel of China is Noront’s next largest shareholder with 5.4 percent.
In late May, Wyloo announced it had done so Steps to Acquire All Outstanding Common Stock from Noront, which does not own it, with a cash offer of $ 133 million.
Wyloo has a keen interest in Noront’s Eagle’s Nest high-grade nickel and copper deposit, considered one of the best undeveloped nickel sulfide deposits in the world and located in a remote location 500 kilometers northeast of Thunder Bay.
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In reviewing Wyloo’s loan offer, Noront said, given its position as a developing company with no mining income, its board of directors and advisors found it “inadvisable to burden the company with additional debt” without the Ability to repay this loan within six months.
In the press release, Noront reminded everyone “that Wyloo Metals has not yet initiated a takeover bid and that such offer may never materialize.”
Noront said it had not received a formal offer from Wyloo, only the intent to make an offer.
The Toronto-based company said Wyloo would not be eligible to initiate a takeover bid until a formal valuation of Noront was made by an independent valuer, “which may take several weeks.”
“Should Wyloo Metals proceed with a takeover offer, Noront’s board of directors will carefully examine such offer and make a recommendation to its shareholders.”
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Meanwhile, Wyloo Metals billionaire Andrew Forrest is pushing his performance to some of the First Nation executives in the Ring of Fire space.
In a June 1 letter to the chiefs of the Matawa First Nations, Forrest wrote: “Last week we made an offer to purchase any shares in Noront that we do not yet own.”
Wyloo made its ambitious intentions clear in the last week of May, pledging to spend mega-millions to turn the Ring of Fire into a net-zero mining operation; Investigate the potential for a battery materials factory to be built in Ontario, with particular emphasis on prioritizing procurement of First Nations owned companies and establishing a training and employment center that guarantees mining and support jobs.
“These are just the first commitments that will be part of Wyloo Metals’ long-term investment and I look forward to working with you and your community to unlock the transformative potential of the Ring of Fire in a sustainable and inclusive way,” said Forrest in his letter.
“I hope in the coming months that the travel restrictions will allow us all to meet in person and I invite you to get in touch with my team at Wyloo Metals to provide further details on our investment strategy across the region Until our face-to-face meeting, please take a big hug for me. I look forward to working with you and your co-workers for a better future. “
According to Noront’s schedule, Eagle’s Nest is expected to go into commercial production in mid-2026 once construction of the planned north-south access road into the region is completed. It would be the first of three deposits to begin mining, followed by the Blackbird and Black Thor chromite deposits.
