The months-long tussle between BHP and Wyloo for Noront highlights a rush among miners to lock in supplies of a key battery metal used in electric vehicles.
Wyloo's 70 Canadian cents per share proposal represents a superior value for shareholders, Noront said, adding BHP has five business days to match the offer.
Wyloo had earlier offered C$0.315 per share and that compared with an offer of C$0.55 from BHP in July.
BHP in August said it would consider matching Wyloo's raised bid.
(Reporting by Rithika Krishna in Bengaluru; Editing by Sriraj Kalluvila)