Freewest Resources Announces Closing of $2,300,000 Private Placementadmin
Freewest Resources Canada Inc. 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.