MONTREAL,
QUEBEC, CANADA--(Marketwire - July 30, 2007) - Freewest Resources
Canada Inc. (TSX VENTURE:FWR) announces that it has completed a private
placement by issuing 5,714,284 "flow-through" common shares
to four limited partnerships associated with MineralFields Group of
Toronto, Ontario at a price of $0.175 per share, for gross proceeds to
Freewest of $1 million.
Each share is accompanied by one common share purchase warrant. Each
warrant entitles the holder to acquire one additional common share of Freewest
at a price of $0.25 until July 26, 2008.
In connection with the private placement, Freewest paid a finder's fee
to Limited Market Dealer Inc. consisting of 228,571 common shares and a
compensation option entitling Limited Market Dealer Inc. to purchase up
to 571,428 units of Freewest, representing 10 % of the number of
"flow-through" common shares sold in the private placement.
The compensation option is exercisable at a price of $0.175 per unit
until July 26, 2008. Each unit will be comprised of one common share of
Freewest and one common share purchase warrant. Each of the warrants
will entitle the holder to purchase additional one common share of
Freewest at a price of $0.25 until July 26, 2008.
Freewest also paid Limited Market Dealer Inc. a due diligence fee of
$40,000, representing 4% of the gross proceeds raised in the private
placement.
Under applicable securities legislation and policies of the TSX Venture
Exchange, the common shares and warrants issued in the private
placement are subject to a hold period expiring on November 27, 2007.
Freewest will use the proceeds from the private placement for
exploration work on its properties.
As a result of the private placement, there are 144,162,680 common
shares of Freewest issued and outstanding.
Freewest is a well-funded mineral exploration company exploring for
gold, uranium and base metals in 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.
About MineralFields, Pathway and First Canadian Securities (R)
MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration
that offers its tax-advantaged super flow-through limited partnerships
to investors throughout Canada
during most of the calendar year, as well as hard-dollar resource
limited partnerships to investors throughout the world. Pathway Asset Management
also specializes in the manufacturing and distribution of structured
products and mutual funds. Information about MineralFields Group is
available at www.mineralfields.com.
First Canadian Securities(R), a division of Limited Market Dealer Inc.,
is active in leading resource financings (both flow-through and hard
dollar) on competitive, effective and service-friendly terms, with
investors both within, and outside of MineralFields Group.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
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