Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

October 31, 2007 14:44 ET

Freewest Resources Announces Second Closing of $800,000 "Flow-Through" Private Placement With MineralFields

MONTREAL, QUEBEC--(Marketwire - Oct. 31, 2007) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it has completed the second closing of its previously-announced private placement by issuing a total 1,071,426 "flow-through" common shares to three limited partnerships associated with MineralFields Group of Toronto, Ontario at a price of $0.28 per share, for gross proceeds to Freewest of $300,000.

The sale of the 1,071,426 units represents the second and final tranche of a private placement of 3,000,500 units, for a gross proceeds to Freewest of $800,000.

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 29, 2008.

In connection with the private placement, Freewest paid a finder's fee to Limited Market Dealer Inc., consisting of 42,857 common shares and a compensation option entitling Limited Market Dealer Inc. to purchase up to 107,143 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 $0.28 per unit until October 29, 2008. 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 until October 29, 2008.

Freewest also paid Limited Market Dealer Inc. a due diligence fee of $12,000, representing 4% of the gross proceeds raised in the second tranche of the private placement.

The common shares and warrants issued by Freewest at the second closing of the private placement are subject to a four-month hold period expiring on March 1, 2008, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

Freewest will use the proceeds from the private placement for exploration work on its properties.

As a result of the second tranche of the private placement, there are 150,014,680 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 Freewest's shares are listed on the TSX Venture Exchange under the symbol FWR.

Investors are invited to visit the Freewest Hub at www.agoracom/IR/freewest where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

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 First Canadian Securities®, 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.

Contact Information

  • Freewest Resources Canada Inc.
    Mackenzie I. Watson
    President and CEO
    (514) 878-3551 or 1-888-878-3551
    (514) 878-4427 (FAX)