TORONTO — Noront Resources has launched a takeover bid for Freewest Resources of Montreal, a move that would consolidate the two companies' exploration properties in the Ring of Fire. Noront hopes to acquire all of the outstanding common shares of Freewest by offering one Noront share for every four Freewest shares. The deal values Freewest at approximately $90 million.
Freewest said in a news release that Noront's offer is "highly opportunistic and significantly undervalues Freewest's assets." The Freewest board will consider an offer when it is formally made, and in the meantime the company has taken steps to engage a financial advisor to assess the offer.
Freewest's McFauld's property is located between Noront's Eagle one and Eagle Two nickel-copper-PGM discoveries and the property held by Spider Resources and KWG Resources in the James Bay Lowlands.
Visit www.Freewest.com or www.NorontResources.com for the latest news on the takeover.
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