BHP, Noront Resources Terminate Support Agreement

(RTTNews) - BHP Group Plc (BHP.AX, BLT.L, BBL, BHP) Thursday said its unit BHP Lonsdale Investments Pty Ltd has terminated the support agreement between BHP Lonsdale, its subsidiary BHP Western Mining Resources International Pty Ltd and Noront Resources Ltd. (NOT.TO).

The agreement was related to Noront's support of BHP Lonsdale's C$0.75 per share offer to acquire Noront. In accordance with the terms of the support deal, Noront has made a C$17.78 million termination payment to BHP WMR.

On December 21, BHP Lonsdale had announced that it will not increase or extend its offer for Noront Resources. The company then said it 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.

The Noront board of directors has determined that the proposal from Wyloo Metals to acquire Noront for C$1.10 in cash per share is a superior proposal under the support agreement between Noront and BHP, and that BHP Lonsdale has a right to match Wyloo's proposal. BHP Lonsdale then determined it will not match Wyloo's proposal.