Andrew Forrest ups bid in battle with BHP for Noront Resources

Billionaire metals magnate Andrew Forrest has hiked his bid for Canadian nickel miner Noront Resources to 70 Canadian cents per share, it emerged on Tuesday.

Wyloo Metals, owned by Forrest, made the fresh offer to beat the 55 cents-per-share bid from BHP, made in July, which won the support of Noront’s board.

In a statement, Wyloo pointed to the 37.5% of Noront it already owned as giving its offer a “higher degree” of certainty.

“If shareholders share my view, that it’s impossible to place a value today on a new mining district with the immense potential of these assets, I invite them to hold on to their shares and come along for the ride,” Andrew Forrest said in the statement.

BHP was quick to respond on Tuesday, telling markets that the proposal from Wyloo was non-binding and was still subject to due diligence and the negotiation of definitive transaction agreements.

“Despite their latest press release, Wyloo has not made a formal offer and the BHP offer is the only transaction currently available to Noront shareholders,” said BHP’s chief development officer Johan van Jaarsveld.

“Wyloo's support is not required in order for BHP's offer to be successful, and we remain confident in our offer.

“We have the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle's Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come.”