Vancouver — Freewest Resources Canada (FWR-V) has completed a private placement with Teck Cominco (TEK-T) by issuing 1.1 million units at a price of 50 per unit, for total proceeds $550,000.
Each unit consists of one Freewest common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at a price of 57.5 per share for a period of six months and at a price of 65 for one year thereafter.
As a result of the private placement, there are 86.8 million common shares of Freewest issued and outstanding.
Earlier this month, Freewest inked a deal with Teck Cominco with respect to Freewest’s Larose project in Moss Township, northwestern Ontario. Freewest has identified high-grade gold surface showings on the property.
Freewest is required to spend a minimum of $350,000 of the proceeds of the Teck financing on the Larose project this year. In return, Teck Cominco will have certain priority rights over the project, including a right of first offer over any interest in the Larose project that Freewest intends to sell, and a right of first refusal for a period of one year.
Teck Cominco will also have the right to participate in each Freewest financing up to 25% of the financing. If the major holds at least a 10% interest in Freewest’s share capital, it will have the right to participate in financings to maintain its proportionate interest.
Teck will also provide technical support for the Larose project for at least one year. Thereafter, technical support will be provided at Teck Cominco’s option. In addition, Freewest will not provide technical information with respect to the Larose Project to third parties, or entertain any third party offer with respect to the Larose Project, for a period of six months.
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