A proposed reorganization of Freewest Resources (TSE) and its subsequent amalgamation with Hemlo Gold Mines (TSE) has been approved by Freewest’s shareholders.
Effective Dec. 15, all of Freewest’s assets outside of the Harker-Holloway area in northeastern Ontario were transferred to wholly owned subsidiary Freewest Resources Canada. Shareholders of Freewest will receive a dividend of one common share in Freewest Canada for each share of the parent company held. In addition, they will receive one Hemlo common share in exchange for each 4.1 Freewest shares.
The reorganization will allow Freewest to continue exploration activities through Freewest Canada. Also, Freewest shareholders will be able to continue participating in the Harker-Holloway project and other endeavors Hemlo is pursuing.
Freewest Canada will have more than $3 million in cash and more than 20 exploration properties, most notably in New Brunswick, Wisconsin and Quebec. The company is currently drilling in Wisconsin and will start drilling the Verneuil and New Brunswick properties in early 1995.
Freewest Canada shares began trading on the Toronto and Montreal stock exchanges on Dec. 21.
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