Australia-based Wyloo Metals is planning to make an offer to acquire the outstanding common shares of Noront Resources it currently does not own, valuing the Canadian firm at $110.3m (C$133m).

Wyloo Metals intends to acquire all the remaining Noront shares at $0.261m (C$0.315) in cash apiece.

The Australian firm currently owns around 23% of the outstanding common shares of Noront through its wholly owned subsidiary Wyloo Canada.

In response to Wyloo’s unsolicited offer, Noront said that its board of directors has formed a special committee to review the proposal.

Noront owns a 100% stake in Eagle’s Nest high-grade nickel sulphide deposits, Blackbird chromite discovery, and Black Thor chromite deposit, all of which are located in Ontario, Canada.

It also holds a 70% stake in the Big Daddy chromite deposit and a 100% interest in the Black Label deposit.

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Additionally, Noront is planning to mine chromite in the Ring of Fire in northwestern Ontario and build a related ferrochrome production facility (FPF).

In a press statement, Wyloo said: “The offer immediately crystallises full and certain value for Noront shareholders while removing their exposure to the uncertainty of several further years of infrastructure and mine development associated with the Ring of Fire assets.”

Wyloo Metals also plans to make a C$5m unsecured, extendable loan available to Noront.

The company notes: “Wyloo Canada would acquire an additional 90,536,252 common shares of Noront upon full conversion of the Noront loan and would, if the Noront warrants were also fully exercised, result in Wyloo Canada holding 190,270,066 common shares of Noront, representing approximately 37% of the outstanding common shares on Noront.”