MONTREAL, QUEBEC, Oct. 8, 2009 (Marketwire) -- Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it has constituted a Special Committee of its Board of Directors to consider Freewest's strategic alternatives following an announcement on October 5, 2009 by Noront Resources Ltd. that it intends to make an unsolicited all-share offer for all of the outstanding shares of Freewest. According to Noront's announcement, the offer will consist of one common share of Noront for every four Freewest common shares.
The Special Committee will evaluate all alternatives, which may include the continued execution of Freewest's business plan, a divestiture or spin-out of assets to Freewest's shareholders, or an amalgamation, plan of arrangement, merger, sale or other business transaction involving Freewest and a third party, and make recommendations thereon to the Board of Directors.
The Freewest Board members appointed to the Special Committee are George Bryson and Edward Thompson, both of whom are long-serving, independent members of the Freewest Board.
Freewest further announces that it has retained CIBC World Markets Inc. to act as Freewest's exclusive financial advisor with respect to such review and, if deemed appropriate by the Board of Directors, execution of strategic alternatives.
Speaking on behalf of the Board of Directors, Mackenzie I. Watson, Freewest's President and Chief Executive Officer, has previously stated that Freewest considers the unsolicited take-over offer announced by Noront to be highly opportunistic and that the offer would significantly undervalue Freewest's assets and future value-creation potential.
The Board of Directors notes that no formal offer has been received from Noront. The Board of Directors reiterates its advice that should such an offer be made, shareholders not deposit any common shares of Freewest to such Noront offer and not take any action concerning the offer until Freewest shareholders have received further communication from the Board of Directors of Freewest. Should such an offer be made, the Board of Directors, after receiving advice from CIBC World Markets, will provide further advice to shareholders.
Freewest is a well-financed mineral exploration company. It is actively exploring for gold, base-metals and chromite within eastern Canada. Corporate information can be accessed on the Internet at www.freewest.com. Freewest's shares are listed on the TSX Venture Exchange under the symbol FWR.
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