Hemlo boosts stake in Freewest

Toronto-based Hemlo Gold Mines (TSE) recently increased its stake in Freewest Resources (TSE) to 13.4% by purchasing 268,516 common shares under financing agreements signed during the past two years.

According to Hemlo Gold, 175,255 shares were acquired under an agreement that gives the Noranda (TSE) affiliate rights to purchase two million shares on a flow-through basis at a 10% discount to the market price of the shares. Proceeds are being used to fund Freewest’s 40% share of development costs at the Holloway, Ont., gold project which is held 60% by Hemlo Gold. The remaining 93,261 shares were acquired under a flow-through agreement requiring Hemlo to purchase an additional 6,793 common shares on a flow-through basis at $3 each.

As a result, Hemlo Gold now holds 1.32 million of Freewest’s 8.3 million issued shares. They traded recently at $2.56 in a 52-week range of $4.05-2.40.