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Miner BHP‘s stock rises following Noront acquisition update

By David Burrows

08:34, 13 December 2021

BHP head office in Perth, Australia
BHP head office in Perth, Australia. Photo: Alamy

Multi-national mining giant BHP saw its stock rise early morning in London trade after it announced on Monday that it ended discussions with Australia’s Wyloo Metals for potential support of its subsidiary BHP Lonsdale’s CAD0.75 per stock offer for Canadian miner Noront Resources.

The Anglo-Australian miner’s stock price rose 2.42% in early morning trading to 2,179.5p.

Following what BHP called ‘constructive discussion’ with Wyloo Metals regarding a mutually beneficial arrangement for the acquisition of Noront, the parties were unable to reach an agreement, the release said.

Wyloo Metals is an Australian-based metal and mining exploration business. Noront Resources is a Canadian-based mining company, with ownership or a controlling interest in the major discoveries in the Ring of Fire – an emerging multi-metals area in the James Bay Lowlands of Northern Ontario.

Cash offer for Noront

BHP Lonsdale and Noront are encouraging Noront shareholders to tender to BHP Lonsdale’s all-cash offer of CAD0.75 per Noront share.

Oil - Crude

71.02 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0213%
Short position overnight fee -0.0006%
Overnight fee time 22:00 (UTC)
Spread 0.040


22.76 Price
-0.980% 1D Chg, %
Long position overnight fee -0.0205%
Short position overnight fee 0.0123%
Overnight fee time 22:00 (UTC)
Spread 0.020

Natural Gas

2.28 Price
-9.670% 1D Chg, %
Long position overnight fee 0.1063%
Short position overnight fee -0.1282%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Oil - Brent

75.63 Price
-0.180% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.045

The offer is the only offer available to Noront shareholders and it continues to have the support and recommendation of the board of directors of Noront, said the press release.  

As a reminder, the offer has a minimum tender requirement of more than 50% of the outstanding Noront shares not beneficially owned or controlled by BHP Lonsdale or any person acting jointly or in concert with the offeror.

Shareholders have until 14 January 2022 evening Toronto time to accept the offer and tender their shares, said the press release.

Read more: Aussie firms ready to spend more as Covid restrictions lift

Markets in this article

BHP Group
61.87 USD
-0.64 -1.030%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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