Freewest Resources Canada (TSX: V.FWR, Stock Forum) shares shot up 21% to 38 cents on Monday after Noront Resources (TSX: V.NOT, Stock Forum) announced that it intends to make a share exchange take-over bid to acquire all of the outstanding common shares of Freewest at an implied offer price of approximately 39.75 cents per share, in a transaction which values the fully diluted share capital of Freewest at approximately $90 million. Under the offer, Freewest common shareholders will be entitled to receive one Noront common share for every four Freewest common shares held.
Speaking on behalf of Freewest's Board of Directors, Mackenzie I. Watson, President and Chief Executive Officer of Freewest, stated: "We believe the unsolicited take-over offer announced by Noront is highly opportunistic and significantly undervalues Freewest's assets and future value-creation potential." The Board of Freewest will consider the unsolicited offer when it is formally made and make a recommendation to Freewest's shareholders.