It is reported that Noront Resources Limited is staying in the fight for control of Montreal based Freewest Resources Canada Inc, owner of a high value chromite property in northwestern Ontario.

As per report, Noront offered two of its shares and a 5 year purchase warrant, with a three year strike price of USD 4 for every seven Freewest shares.

Noront said that the offer values Freewest at USD 222 million based on Noront stock. It added that Freewest shareholders would end up with about 27% of the merged company, claiming that Freewest's board had failed shareholders by recommending a November 24th 2009 all stock offer from US international mining giant Cliffs Natural Resources Inc, worth about USD 150 million a Freewest share, based on market prices at the time.

Cliffs said that it would build a USD 800 million US open pit mine and processing plant with annual capacity of 800,000 tonnes of ferrochrome, with startup set for 2015. Freewest's non chromite properties were to be spun off into a new publicly traded company in which Freewest shareholders would participate.

Noront is an exploration company with nickel, copper and platinum finds in the same area as Freewest's chromite deposit in the James Bay Lowlands of Ontario. It said a merged Noront Freewest would explore and develop the joint properties aggressively.

(Sourced from www.canada.com)