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UPDATE 2-Australian Forrest's Wyloo plans bid for rest of Canada's Noront

(Adds details, background)

TORONTO, May 25 (Reuters) - Australian mining magnate Andrew Forrest’s Wyloo Metals said on Tuesday it would launch an unsolicited bid for the shares in nickel-copper miner Noront Resources it does not already own, an offer valuing the company at C$133 million (US$110 million).

Noront responded by recommending that shareholders defer taking any action while it considers alternatives to Wyloo’s C$0.315 per share offer.

The bid shows extended interest in battery minerals from Forrest, Australia’s second richest person, whose wealth Forbes estimated at $20.3 billion this year due to his shareholding in iron ore miner Fortescue Metals Group.

Wyloo, a subsidiary of Forrest’s Tattarang, one of Australia’s largest private investment groups, became Noront’s top shareholder with a 23% stake in December.

Wyloo said a deal would remove Noront shareholders’ exposure to uncertainty of “several further years” of infrastructure and mine development.

The bid would add to a global green drive by Forrest, who over more than two decades turned Fortescue Metals into the world’s fourth-biggest iron ore miner.

Noront’s main asset is the high-grade Eagle’s Nest nickel, copper and palladium deposit in Canada’s so-called Ring of Fire. That region contains rich mineral resources, but development has been hampered by a lack of power and transportation infrastructure in the area in the far north of Ontario, some 1,000 miles northwest of Toronto.

Wyloo said the offer represents a 31% premium based on the closing price of Noront shares on May 21, the last trading day prior to the offer announcement.

Noront shares closed up 29% at C$0.31.

Wyloo Metals also said it was prepared to make available to Noront a C$5 million unsecured, extendable loan.

In January, Wyloo announced a C$25 million option and joint venture agreement with Canada’s Orford Mining covering the West Raglan nickel project in Nunavik, Quebec.

(US$1 = C$1.21)

Reporting by Jeff Lewis; additional reporting by Melanie Burton in Melbourne Editing by Richard Chang and Leslie Adler

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