Cliffs' takeover of Freewest to be closed this week

Jan. 25, 2010
Cliffs Natural Resources Inc. said shareholders of Freewest Resources Canada Inc. have approved the previously announced deal under which Cliffs will acquire the Montreal-based exploration company for $1.00 per share (Canadian) in Cliffs' stock.
The Cleveland-based producer of iron ore and coal said the deal was approved by approximately 82% of the Freewest votes cast.
Freewest was the object of an intense takeover battle between Cliffs and Noront Resources of Toronto, which both wanted Freewest because of the deposits of chromite ore it controls. Chromite ore is used to produce ferrochrome.
Cliffs finally won out in the bidding war last month with an offer that valued Freewest at $240 million.
Joseph A. Carrabba, Cliffs chairman, president and CEO, said in a statement, "We look forward to developing what we consider to be one of the premier chromite deposits in the world. This long-term project positions Cliffs to become the sole North American primary chromite and ferrochrome producer/exporter. It is also consistent with the company's strategy to broaden its product offerings and customer base through a mineral regarded as a strategic resource by many countries."
Cliffs said the transaction is expected to close on Jan. 27, subject to customary conditions. Assuming Jan. 27 becomes the effective time, Freewest shareholders will receive 0.0201 Cliffs share for each Freewest share owned.