News: FMG UPDATE 1-Mincor Resources urges shareholders to back Wyloo's takeover offer

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April 4 (Reuters) - Australian nickel miner Mincor Resources (MCR) recommended on Tuesday its shareholders vote in favour of a A$750.3 million ($509.08 million) buyout bid from Wyloo Metals, owned by Australian mining magnate Andrew Forrest.

A key attraction in Mincor is a nickel sulphide deposit it is developing in Western Australia that would raise Wyloo's exposure to the battery material and could feed a nickel sulphate plant it is considering building with miner IGO (IGO) .

The move comes as Australia builds out a critical minerals processing industry to reap more value from the electric vehicle battery chain.

Wyloo Metals said on Monday the A$1.40-per-share offer price was declared as its "best and final". The offer stood at a 35% premium to Mincor stock's last close on March 20, a day prior to the deal announcement.

Last month, Mincor had advised shareholders to take no action regarding the offer.

But the miner has since had to withdraw its production forecast for fiscal 2023 after failing to secure an amendment to its offtake agreement with BHP Group (BHP) .

Shares of Mincor rose 0.4% by 0122 GMT on Tuesday. Forrest, who built his fortune through his majority holding in Fortescue Metals Group, the world's fourth-largest iron ore miner, already owns nearly 20% of Mincor through his private investment vehicles Wyloo and Tattarang.

($1 = 1.4738 Australian dollars)