Wyloo Metals has stepped up its stake in WA nickel play Western Areas to just over 9 per cent, despite the target agreeing to a $1.1 billion takeover with IGO six weeks ago.
The notice was posted to the ASX on Wednesday afternoon, revealing Andrew Forrest’s Wyloo had topped up its stake in IGO’s takeover target from 6.3 per cent to 9.1 per cent for a consideration of $31.4 million.
Wyloo last increased its holding in Western Areas from 5.3 per cent to 6.3 per cent just days after media speculation on a now all but sealed deal takeover between IGO and WSA resurfaced late last year.
IGO since confirmed plans to acquire Western Areas in an all-cash deal valued at $1.1 billion in December.
In picking up Western Areas, IGO would take control of the company’s portfolio of lithium and nickel assets including the Forrestania nickel operations near Kalgoorlie and the Cosmos nickel operation near Leinster.
The $299 million Odysseus mine is also in development.
Mr Forrest’s intentions for Western Areas is unclear at this stage, but is preluded by similar activities in the nickel space.
Earlier today, Tattarang concluded its gradual sell down in fellow WA commodity play Poseidon Nickel, forgoing its position as a substantial holder in the business.
Last December, Wyloo emerged as the frontrunning bidder after a lengthy bidding war between against BHP for Canadian nickel business Noront Resources.
Wyloo’s offer valued the Canadian miner at around $C614 million ($A673 million) at the time.
The acquisition forms part of Wyloo’s broader, long term strategy to responsibly develop the ‘Ring of Fire’, an emerging mining district in Ontario.
Whether a Noront-style biddng war emerges for WSA, remains to be seen.
