Mr. William Randall reports
FREEMAN GOLD ACQUIRES BACK-IN RIGHT FROM YAMANA GOLD INC.
Freeman Gold Corp. has acquired and extinguished a back-in right from Yamana Gold Inc. over Freeman's Lemhi project in consideration of the issuance to Yamana of 4,035,273 common shares of Freeman, representing 5 per cent of Freeman's issued and outstanding shares.
Will Randall, president and chief executive officer, commented: "We are delighted to welcome Yamana as a 5-per-cent strategic shareholder. Having a major gold producer with Yamana's calibre take a significant position in our company is a major vote of confidence in the project and the team we have assembled. We hope to work together over the coming months and years. The transaction removes the existing back-in agreement on five of our patented claims which is a major step in derisking the Lemhi project. The project is now free of all back-in rights."
Details of the transaction
Freeman and Yamana have entered into a purchase agreement under which Yamana has agreed to the transfer, termination and extinguishment of the back-in right. In consideration, Freeman has issued to Yamana 4,035,273 common shares of Freeman, representing 5 per cent of Freeman's issued and outstanding shares. The consideration shares are subject to a four-month hold period under applicable securities laws. In addition, in order to better ensure an orderly market in the Freeman shares, Yamana has agreed that for a period expiring on the earlier of: (a) one year; and (b) the date on which Yamana holds less than 2 per cent of the outstanding Freeman shares, Yamana will not sell or transfer within a 30-day period shares presenting more than 1 per cent of the outstanding Freeman shares without first providing Freeman with notice and five business days in which to identify a buyer for those shares.
Following the closing of the transaction, the company will issue finders' fees in the amount of 260,000 common shares of the company.
About the company
Freeman Gold is a mineral exploration company focused on the development of its 100-per-cent-owned Lemhi gold property. The Lemhi project comprises 30 square kilometres of highly prospective land. The mineralization at the Lemhi project consists of shallow, near-surface primarily oxide gold mineralization that has seen over 355 drill holes but remains open at depth and along strike and in most directions. The company is working toward derisking the asset and producing a maiden National Instrument 43-101 resource estimate as a result of both brownfields and greenfields exploration. The technical content of this news release has been reviewed and approved by Dean Besserer, PGeol, the vice-president of exploration for the company and a qualified person as defined by National Instrument 43-101.
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