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MONTREAL, QUEBEC--(Marketwire - Oct. 23,
2007) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that
it has completed a private placement by issuing 1,923,074
"flow-through" common shares to six limited partnerships
associated with MineralFields Group of Toronto, Ontario at a price of
$0.26 per share, for gross proceeds to Freewest of $500,000.
Each share is accompanied by one-half of a common share purchase
warrant. Each whole warrant entitles the holder to acquire one
additional common share of Freewest at a price of $0.40 until October
23, 2008.
In connection with the private placement, Freewest paid a finder's fee
to Limited Market Dealer Inc., consisting of 76,923 common shares and a
compensation option entitling Limited Market Dealer Inc. to purchase up
to 192,307 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 $0.26 per unit
until October 23, 2008. Each unit will be comprised of one common share
of Freewest and one-half of a common share purchase warrant. Each whole
warrants will entitle the holder to purchase one additional common
share of Freewest at a price of $0.40 until October 23, 2008.
Freewest also paid Limited Market Dealer Inc. a due diligence fee of
$20,000, 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 February 24, 2008.
Freewest will use the proceeds from the private placement for
exploration work on its properties.
As a result of the private placement, there are 148,943,254 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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