Noront Resources announced it has agreed to Australian mining company Wyloo Metals takeover bid of $1.10 per share. BHP, who previously bid $0.75 per share, has decided not to match the offer.

Wyloo and BHP had been engaged in a tug of war over Noront since July. Noront’s Eagle’s Nest project, located in the Ring of Fire in northern Ontario, has high-grade nickel, copper, platinum and palladium deposits. Last week, Wyloo increased its bid to $1.10 per share, 47 per cent higher than BHP’s previous offer from October.

According to a press release, published on Dec. 21, Noront said it has settled an arrangement agreement with Wyloo. If the agreement is successful Noront said, "Wyloo Metals has also agreed to provide a loan to Noront of up to C$29.38 million to finance, among other things, the termination payment of C$17.78 million payable to BHP upon the termination of the Support Agreement, as well as other transaction-related costs."

“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,” said Luca Giacovazzi, Head of Wyloo Metals. "Working hand-in-hand with First Nation and regional partners, we’ll develop the Ring of Fire into one of Ontario’s great mineral districts that will be pivotal in the world’s transition to a lower carbon future.”

Among the terms of the agreement is that Noront’s current board of directors be replaced with one handpicked by Wyloo, which will include Andrew Forrest as its chair. Forrest is the former CEO of Australian mining major Fortescue Metals Group.