BHP (ASX:BHP) share price rises amid Noront Resources takeover update

Here’s what is happening with the BHP share price today…

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two smiling men in high visibility vests and miners helmets stand side by side with a large mound of earth and mining equipment behind them.

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The BHP Group Ltd (ASX: BHP) share price is pushing higher on Wednesday morning.

At the time of writing, the mining giant’s shares are up almost 1% to $35.82.

Why is the BHP share price rising?

The BHP share price is rising today after a potentially positive update offset further weakness in iron ore prices.

In respect to the latter, according to CommSec, the spot iron ore price fell US$6.85 or 6.6% during overnight trade to US$96.45 a tonne.

As for the former, BHP released an update on its pursuit of Noront Resources.

According to the release, the company is currently in discussions with Wyloo Metals regarding its potential support of BHP’s C$0.75 per share offer to acquire Noront Resources. This offer is being recommended by the Noront Board.

Wyloo Metals, which is controlled by Fortescue Metals Group Limited (ASX: FMG) Chair Twiggy Forrest and owns a 37% stake in Noront, has been battling BHP for control over the Canadian miner.

Both businesses appear to be attracted to Noront Resources due to its controlling interest of major discoveries in the Ring of Fire. This is an emerging multi-metals area located in the James Bay Lowlands of Northern Ontario, Canada.

No real details have been provided regarding what the discussions entail. However, BHP revealed that the two parties are considering a mutually beneficial arrangement.

BHP commented: “BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP. There is no assurance that any agreement will be reached between BHP and Wyloo Metals.”

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