Freewest Resources Announces Private Placement Of Up To $3 Million
March 3, 2008
Montreal, Québec, Canada, March 3, 2008 – Freewest Resources Canada Inc. (FWR:TSX-V) announces that it will effect a private placement of a maximum of 8,571,428 units at a price of $0.35 per unit, for maximum gross proceeds to Freewest of $3.0 million. Each unit will consist of one common share and one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of Freewest at a price of $0.50 for one year after the closing of the private placement, subject to acceleration in certain events.
The units will be sold to “accredited investors” in Canada on a prospectus-exempt basis. Subject to regulatory approval, closing of the private placement is expected to occur on or about March 6, 2008. The proceeds from the private placement will be used by Freewest for its exploration program on its properties located in the McFaulds Lake area of Northern Ontario and elsewhere, as well as for working capital and general corporate purposes.
In connection with the private placement, Freewest will pay finders’ fees in a maximum amount equal to 7% of the gross proceeds raised under the private placement, which the various finders may elect to receive in cash, common shares at a deemed issue price of $0.35 per share, or a combination of cash and shares. In addition, Freewest will issue non-transferable “finders’ warrants” to the various finders, entitling them to purchase a number of units equal to 10% of the number of units sold in the private placement. The units issued on the exercise of the “finders’ warrants” will be identical to those issued in the private placement. The “finders’ warrants” may be exercised for one year after the closing of the private placement.
The private placement is subject to regulatory approval, including that of the TSX Venture Exchange. The securities issued in connection with the private placement will be subject to a four-month hold period under the policies of the TSX Venture Exchange and applicable securities legislation.
Freewest is a well-funded mineral exploration company exploring for gold and base-metals within 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.