Cashed-up Forrest swoops on Canadian nickel project
Andrew Forrest is putting his financial might behind the company that controls Canada’s highest-grade nickel discovery since Vale-owned Voisey's Bay, as he grows his mining footprint beyond iron ore.
Wyloo Metals, owned by Forrest’s private investment arm Tattarang, is set to emerge with a near 38 per cent stake in Noront Resources under the terms of a $US26.5 million ($35.7 million) deal.
Mr Forrest has been building a portfolio of nickel investments in Australia, where his private business arm is a major backer of ASX-listed Poseidon Nickel, and has a 15 per cent stake in Mincor Resources and a smaller stake in Panoramic Resources.
In the latest deal, Wyloo will pay $US11.5 million for 22.65 per cent of Noront shares and purchase a $US15 million convertible loan from Resource Capital Fund.
Noront’s assets include the high-grade Eagle’s Nest nickel project in the Ring of Fire, an emerging multi-metals region in the James Bay Lowlands of Northern Ontario.