MONTREAL, QUEBEC-(Dec. 31, 2008) -
Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it has completed a private placement by issuing an aggregate of 11,500,000 "flow-through" common shares to an investor from Ontario and seven limited partnerships associated with MineralFields Group of Toronto, Ontario at a price of $0.20 per share, for gross proceeds to Freewest of $2,300,000. Each share is accompanied by one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of Freewest at a price of $0.40 per share for a period of twenty-four months from the date of issuance.
In connection with the private placement, Freewest paid a finder's fee to Limited Market Dealer Inc., consisting of 400,000 common shares, representing 4% of the number of common shares issued in the private placement through Limited Market Dealer Inc. Freewest also issued a compensation option entitling Limited Market Dealer Inc. to purchase up to 1,000,000 units of Freewest, representing 10 % of the number of "flow-through" common shares sold in the private placement through Limited Market Dealer Inc. The compensation option is exercisable at a price of $0.20 per unit for a period of two years. Each unit will be comprised of one common share of Freewest and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of Freewest at a price of $0.40 per share for a period of twenty-four months from the closing date of the private placement.
Freewest also paid Limited Market Dealer Inc. a due diligence fee of $80,000.
Under applicable securities legislation, the securities issued in the private placement are subject to a four month hold period.
Freewest will use the proceeds from the private placement to explore its properties in the Provinces of Ontario, Quebec and New Brunswick.
As a result of the closing of the private placement, there are 198,033,373 common shares of Freewest issued and outstanding.
About MineralFields, Pathway and First Canadian Securities�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�, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.
About FreewestFreewest is a well-financed mineral exploration corporation with over C$7.0 million in working capital. It is actively exploring for gold, base-metals and chromite within eastern Canada. Corporate information can be accessed on the Internet at
http://www.freewest.com Freewest's shares are listed on the TSX Venture Exchange under the symbol FWR.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact
Freewest Resources Canada Inc.
Mackenzie I. Watson
President and CEO
(514) 878-3551 or 1-888-878-3551
(514) 878-4427 (FAX)
Email:
info@freewest.comWebsite:
http://www.freewest.com or
Bay Street Connect
Michael D'Amico
Investor Relations
(647) 500-6023