BHP in talks with Wyloo over Noront takeover, extends tender expiry

Nov 2 (Reuters) – BHP Group Ltd has started talks with billionaire Andrew Forrest's Wyloo Metals regarding the takeover of Noront Resources Ltd as both the companies try to acquire the Canadian nickel producer.

In October, BHP increased its all-cash offer for Noront to C$0.75 per share, surpassing Wyloo's $0.70 proposal.

At stake in the scramble for Noront is the Eagle's Nest nickel asset in Canada's so-called Ring of Fire, a high-grade deposit of the electric-vehicle battery metal, as well as copper and palladium.

BHP also extended the tender expiry for its takeover from Nov. 9 to Nov. 16, the world's biggest mining company said on Tuesday.

"BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP," the company said in a statement.

(Reporting by Arunima Kumar in Bengaluru; Editing by Devika Syamnath and Arun Koyyur)

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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