Australian company looks to take over Noront Resources

Noront Resources could have a new owner, if a cornerstone investor in the exploration company has its way.

Wyloo Metals, a subsidiary of Tattarang, one of the largest private investment groups in Australia has said it will submitan unsolicited offer for Noront.

Wyloo already effectively owns 37 per cent of Noront, after a $26 million deal was reached in October, in which Wyloo purchasedjust under 97 million shares of the company, and $15 million in convertible debt.

"The Corporation will review the terms of the Proposal and will communicate with its shareholders as appropriate," Noront said in a statement.

"Noront recommends that shareholders defer taking any action in respect of the Proposal. Shareholders are reminded that the announcement does not constitute an offer, and no offer may ever actually be made."

The offer made by Wyloo is subject to insider trading rules, as the company already owns 23 per cent of Noront, plus $15 million of the company's debt.Wyloo is considered a "cornerstone" investor in the company.

A cornerstone investor is a group that has an interest in a company, but would be considered to be a minority owner.

Norontwas not granting interviews on the proposal on Tuesday.