The world's largest mining company sold Noront for C$0.55 per share, a 129% premium to the company's closing price on May 21, 2021 (the day before Wyloo's proposal).

Noront recommends that shareholders accept the offer from BHP Lonsdale, a subsidiary that already owns 3.7% of the Canadian nickel producer. "BHP Billiton has financial strength, world-class mining expertise, and is committed to working with stakeholders to advance the Eagle's Nest and Ring of Fire projects, which have the potential to bring benefits to local communities, Aboriginals and Ontario over the years," Noront Said Alan Coutts, Chief Executive Officer.

BHP Billiton is accelerating its entry into future-oriented bulk commodities, including nickel, lithium and copper, which are expected to benefit from the green energy transition. Last week, BHP Billiton and Tesla (NASDAQ: TSLA) reached a nickel supply agreement, and it is expected that a decision will be made on Canada's Jansen Potash Project next month. The Melbourne, Australia-based mining giant said in a statement: “Noront represents a potential growth opportunity for the nickel basin that can provide new and expandable nickel sulfide mining areas.”

The company is also exiting thermal coal and is considering exiting the oil and gas industry as part of its commitment to reduce emissions. Wyloo Metals is Noront's largest shareholder, holding 23% of the shares as of December 2020. The company acquired shares that the company does not already own in May at a price of C$0.315 per share. Nolante adopted a poison pill strategy to prevent the acquisition. BHP Billiton's proposal came after its decision to move the headquarters of the exploration team to Toronto, Canada's most populous city.

The company plans to nearly double its exploration expenditures for base metals within five years. Noront owns the early Eagle's Nest nickel and copper deposit, Wyloo, located in the Ring of Fire in northern Ontario, calling it Canada's largest high-grade nickel deposit since the discovery of the Voisey's Bay nickel deposit in eastern Newfoundland and Labrador.

Eagle's Nest is expected to start commercial production in 2026, and the mine will initially operate for 11 years. As the previous federal and provincial governments were unable to negotiate and reach unanimous agreements with the indigenous peoples in the area, Nolante has repeatedly postponed the start date of the mine. The company estimates that nickel production needs to increase nearly four times to meet the expected demand for electric and hybrid vehicles. Similarly, copper production needs to grow exponentially to meet the needs of renewable energy power generation, battery storage, electric vehicles, charging stations and related grid infrastructure.

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Tesla boss Elon Musk also expressed concern about the looming nickel shortage. In 2020, he pleaded with miners to produce more nickel and promised a "huge contract" for efficient production and supply in an "environmentally sensitive way". The electric car manufacturer participated in the development of the conflict-stricken New Caledonia nickel mine in March as part of the company's attempt to ensure adequate supply. BHP Billiton’s offer is consistent with Canada’s efforts to position the country as a center for clean technology metals. Editor/XuNing