Toronto, Ontario, November 9, 2009. Noront Resources Ltd. (“Noront” or the “Company”) (TSX Venture: NOT) believes Freewest’s management fails to address the real issues and have left important questions unanswered both in their press release dated November 2, 2009 and in their October 23, 2009 Directors’ Circular. The Company realizes the importance of answering these questions and stating the facts correctly for all shareholders concerned:
Freewest claims that the Noront Offer fails to compensate Freewest for the strategic value of its assets. In fact the reality is:
- Freewest shareholders will continue to benefit from future increases in value associated with development of the Ring of Fire as they will own 25% of the combined company
- World class deposits aren’t just big they are also low cost and generate high returns
- The sharing of infrastructure will contribute to making the Ring of Fire chrome deposits world class and result in the realization of greater shareholder value
- Blackbird and Black Thor have very similar geological and technical characteristics Black Thor is larger but of lower quality than the Blackbird deposit
- Freewest’s comparison of the two deposits is premature as its drill spacing is too wide to draw any scientifically based conclusions or to prepare a N1 43-101 compliant technical report inline with industry standards
- Freewest continues to fail to report results of merit from its non-Ring of Fire assets
Freewest claims that Noront’s chromite strategy is lacking. In fact the reality is:
- Noront’s strategy is not only to develop the Ring of Fire in the optimal and least dilutive manner, but to ensure that the chrome deposits are a key part of this strategy;
- Noront is the only Americas member of the International Chromium Developers Association, a prestigious group dedicated to the marketing of chromium and all of its ferro alloy products, developers, and end users.
- Noront is aggressively marketing its chromite potential on a global basis
- Rationalization of the Ring of Fire will allow reduction of infrastructure between Eagle’s Nest, Blackbird and Black Thor. This will result in the sharing of infrastructure development capital costs, economies of scale leading to improved economics, greater returns and higher shareholder value
Freewest claims that Noront’s Offer does not reflect an adequate premium for control. In fact the reality is:
- Calculating a premium based on the closing price the day before the announcement of an offer does not take into account any trading irregularities immediately prior to the offer being made
- A premium calculated over a longer period is more representative of the actual premium being offered
- Noront’s offer implies a 51% premium to the volume weighted average over the month prior to the offer being made, compared to a 46% premium paid in recent base metal transactions
- Freewest’s chromite deposits are interesting chromite occurrences whose resource size or grade is yet to be determined in accordance with NI 43-101 or any other reasonable technical standard
- The assumption that the deposit will be economic and will generate future revenues is premature and not based on any reasonable tests or technical evaluations nor supported by an Independent Qualified Person.
- The argument that Noront has undervalued the assets of Freewest does not consider the additional expenses that will be incurred to complete exploration, environmental studies, technical studies, financing and construction of a mine at Black Thor if the future work proves technically feasible, environmentally sound and economic.
- The assumption made by Freewest that future exploration and development successes are a given, and that Noront’s offer should pay for such future successes, fails to recognize the project hurdles as yet to be cleared by Freewest and the risks associated with the future exploration and development of the project.
- Freewest has not completed a preliminary resource estimate to any acceptable technical standard, the argument that Noront’s offer is undervalued since it doesn’t allow for the development potential and future revenues is not reasonable
Freewest claims that the value of Noront is uncertain. In fact the reality is:
- Continued exploration success at Eagle’s Nest suggests the existence of a reasonably-sized, robust, high-grade nickel, copper and PGM deposit
- As the project moves up the value development curve, the value of this deposit should underpin Noront’s share price
Freewest claims that it may be difficult for Freewest shareholders to dispose of Noront shares. In fact the reality is:
- Noront’s daily average trading value over the last year has been ten times more liquid than Freewest’s average trading value
- The combined company will be the seventh largest company on the TSX-V
- Compared to the current stand alone situation the above factors should improve Freewest shareholders ability to sell shares without a share price impact
Freewest claims that superior proposals or other alternatives may emerge. In fact the reality is:
- There are no other deals
For more information on the Freewest Offer, please visit Noront’s website at www.norontresources.com or contact the Investor Relations Department at Noront at 416 367 1444. Ext 126
Updated Questions and Answers to the Freewest Offer have now been posted to the Noront website.
To tender your Freewest shares, please contact;
Laurel Hill at Laurel Hill Advisory Group?��Ǩ��
North American Toll Free Phone: 1-888-882-6742?��Ǩ��
Outside North America, Banks and Brokers Call Collect: 1-416-637-4661
Noront has filed an amended annual information form in order to update the disclosure with respect to certain of its officers from its previously filed annual information form dated September 30, 2009, and has also filed its annual certificates in accordance with National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings, as required
Noront Resources Ltd. is focused on its significant and multiple, high-grade nickel-copper-platinum-palladium, chromite, gold and vanadium discoveries in an area known as the “Ring of Fire”, an emerging multi-metals district located in the James Bay Lowlands of Ontario, Canada. Noront is the dominant land holder at the Ring of Fire and continues to delineate and prove up its discoveries with NI 43-101 technical and economic reports and an aggressive and well financed drill plan for the remainder of 2009 and 2010. All material information on Noront can be found on the Company’s website at www.norontresources.com or at SEDAR at www.sedar.com
For further information regarding this Offer, please contact Wes Hanson, President and Chief
Executive Officer or Joanne Jobin, Vice President Corporate Communications at (416) 367-1444, or visit Noront’s website at: http://www.norontresources.com.
Wesley (Wes) Hanson
President & Chief Executive Officer