BHP abandons pursuit of Noront

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BHP Lonsdale Investments, a wholly-owned subsidiary of BHP, announced it would not increase or extend its offer for Noront Resources.

The announcement comes after the Noront board of directors deemed the proposal from Wyloo Metals to be superior to that of BHP.

BHP Lonsdale, which has a right to match Wyloo’s proposal, said it would not exercise that option.

BHP Chief Development Officer, Johan van Jaarsveld, said the company was is committed to its strict capital discipline framework.

“While the Eagle’s Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP’s offer in order to match the C$1.10 per share proposal from Wyloo Metals Pty Ltd,” he concluded.

Image credit: www.bhp.com