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 http://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 http://www.norontresources.com/ or at SEDAR at http://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.
Noront Resources Ltd.
CONTACT: 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/
