Australian billionaire Andrew Forrest and Wyloo Metals are the winners of Noront Resources, as BHP has officially declined to match Wyloo’s offer for the Canadian mining company with its Eagle’s Nest nickel-copper-platinum-palladium project in the Ring of Fire region of northern Ontario.

With BHP bowing out, Noront and Wyloo will immediately enter into an arrangement agreement, Kallanish reports. The two companies had reached an agreement that the latest Wyloo offer is superior to the previously made offer by BHP Lonsdale Investments, a BHP subsidiary. The acquisition must be approved by Noront shareholders at a special meeting that must be arranged. Noront will get a new board of directors led by Forrest, who directed the Fortescue Metals Group in Australia to become an AUD 60 billion ($43.14 billion) enterprise. Wyloo will provide a CAD 29.38 million ($22.79m) loan to Noront with which it can pay a termination fee of CAD 17.78m to BHP and other related costs. The deal is expected to close March-April 2022.

“The Ring of Fire is home to expansive deposits of these metals, making this a once-in-a-generation opportunity to be part of the green revolution,” says Wyloo Metals’ head Luca Giacovazzi in a statement.

Wyloo had raised its offer for Noront from CAD 70 cents/share to CAD 1.10/share. That offer is 57% higher than its previous bid and 47% more than BHP’s last bid. That offer values Noront at CAD 616.9m.

BHP chief development officer Johan van Jaarsveld says: “BHP is committed to its strict capital discipline framework. While the Eagle’s Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP’s offer in order to match the CAD 1.10 per share proposal from Wyloo Metals.”

Forrest’s company already owns a 37.2% stake in Noront. Wyloo says its offer provides true optionality for Noront shareholders, is a superior offer price and would provide deal certainty.

The two Australian-based mining companies have been fighting for months to acquire Noront. Last October, BHP increased its all-cash offer for Noront to CAD 0.75 per share. That represents a 36% premium over its previous offer of CAD 0.55/share and a 7% premium over Wyloo’s offer of CAD 0.70/share. That raised BHP’s offer to CAD 419.3m. Last May, Wyloo had offered CAD 0.315/share in an unsolicited bid and Noront adopted a poison pill strategy to stop the takeover. Last May, BHP introduced its offer. Noront had recommended its shareholders approve the BHP offer but Wyloo then increased its offer. BHP then topped the Wyloo offer.