Wyloo’s bid for Mincor Resources continues as deadline is extended

Wyloo Metals (ASX:WYL) has extended its takeover offer for Australian nickel explorer Mincor Resources (ASX: MCR) until May 22, according to an announcement made on May 3, 2023.

The privately-held Wyloo offered $1.40 per share of Mincor, a 35% premium on the closing price before the offer, which values the company at $760m ($510m) on a fully diluted basis.

Before the takeover bid, Wyloo owned a nearly 20% stake in Mincor.

Since then, Wyloo has tightened its grip on the target, reaching a 61.64% ownership as of May 2, 2023.

Like other top miners, Wyloo Metals wants to secure a steady supply of metals considered critical for a greener economy, such as nickel, copper, and platinum group metals.

Mincor’s nickel operations are centred in the Kambalda district of Western Australia.

The company’s flagship Cassini nickel mine, a greenfields discovery located to the south, and the northern operations, which comprise the Long and Otter Juan/Durkin North mines, currently comprise the Kambalda nickel operations.

Mincor combines ore from both its northern and southern operations to deliver a blended product to BHP’s nearby Kambalda nickel concentrator.

Despite Mincor’s recent disclosure of nickel quality issues, which threatened the acquisition, Wyloo has continued with its plan to acquire all of Mincor’s shares.

Mincor’s Board of Directors has unanimously recommended that shareholders accept Wyloo’s offer in the absence of a superior proposal.

The extension of the offer period provides Mincor shareholders with additional time to consider their options, although the board of directors continues to recommend that shareholders accept Wyloo’s offer.

The acquisition of Mincor Resources is a significant move for Wyloo and highlights the importance of strategic acquisitions to expand mining companies’ portfolios.

The successful acquisition of Mincor would add to Wyloo’s portfolio of mining assets, providing it with access to nickel sulphide deposits, which are highly sought after in the battery materials market.

The acquisition of Mincor Resources is just one of many acquisitions and mergers that have taken place during the March quarter of 2023.

The previous day, BHP completed its takeover of OZ Minerals.