UPDATE 1-Noront Resources boosts offer for Freewest

Thomson Reuters


* Says deal values Freewest at about C$222 mln

* Says offer full and final

* Price represents 34 pct premium to Friday close Nov 30
(Reuters) - Canada's Noront Resources boosted its offer
to buy metals explorer Freewest Resources Canada Inc ,
topping a rival bid from U.S.-based mining company Cliffs
Natural Resources Inc .

Noront increased its offer for Freewest to about C$222
million ($210.4 million) as it looks to consolidate its nickel
and chrome deposits in northern Ontario.

Under the new offer, Noront will issue two freely tradeable
shares and a full five-year purchase warrant with a strike
price of C$4 for each seven Freewest shares held, valuing
Freewest at 86 Canadian cents a share.

The latest offer from Noront represents a premium of 34
percent to Freewest's Friday closing price of 64 Canadian
cents.

Montreal-based Freewest had been fending off a C$90 million
hostile bid from rival Noront since October, describing it as
"highly opportunistic." [ID:nBNG508368]

Last week, Cliffs Natural agreed to buy Freewest for
roughly C$150 million, and Freewest said its board unanimously
supported the offer and recommended that all Freewest
shareholders accept it. [ID:nN23239002]

Noront said its latest offer will expire on Dec. 11 and
will not be increased.

Shares of Noront closed at C$2.25 Friday on the Toronto
Venture Exchange, while those of Cliffs Natural, North
America's largest producer of iron ore pellets, closed at
$44.07 on the New York Stock Exchange.
($1=1.055 Canadian Dollar)