Noront responds to Freewest's failure to provide shareholders with the facts
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Symbol: NOT:TSX-V
Shares Outstanding: 163,781,957
Fully Diluted: 173,461,957
TORONTO, Nov. 9 /PRNewswire-FirstCall/ - 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
Freewest Offer
--------------
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
North American Toll Free Phone: 1-888-882-6742
Email: assistance@laurelhillag.com
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
About Noront
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
Wesley (Wes) Hanson
President & Chief Executive Officer
FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of
applicable Canadian securities legislation, including predictions, projections
and forecasts. Forward-looking statements include, but are not limited to,
statements that address activities, events or developments that the Company
expects or anticipates will or may occur in the future, including such things
as future business strategy, competitive strengths, goals, expansion, growth
of the Company's businesses, operations, plans and with respect to exploration
results, the timing and success of exploration activities generally,
permitting time lines, government regulation of exploration and mining
operations, environmental risks, title disputes or claims, limitations on
insurance coverage, timing and possible outcome of any pending litigation and
timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking statements can be identified by the use
of words such as "plans", "planning", "planned", "expects" or "looking
forward", "does not expect", "continues", "scheduled", "estimates",
"forecasts", "intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and
assumptions, including, the result of drilling and exploration activities,
that contracted parties provide goods and/or services on the agreed
timeframes, that equipment necessary for exploration is available as scheduled
and does not incur unforeseen break downs, that no labour shortages or delays
are incurred, that plant and equipment function as specified, that no unusual
geological or technical problems occur, and that laboratory and other related
services are available and perform as contracted. Forward-looking statements
involve known and unknown risks, future events, conditions, uncertainties and
other factors which may cause the actual results, performance or achievements
to be materially different from any future results, prediction, projection,
forecast, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
interpretation and actual results of current exploration activities; changes
in project parameters as plans continue to be refined; future prices of gold;
possible variations in grade or recovery rates; failure of equipment or
processes to operate as anticipated; the failure of contracted parties to
perform; labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion of
exploration, as well as those factors disclosed in the company's publicly
filed documents. Although Noront has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Noront Resources Ltd.
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
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