Ms. Kristina Walcott reports
FREEGOLD ANNOUNCES $30 MILLION BROKERED PRIVATE PLACEMENT FINANCING
Freegold Ventures Ltd. intends to raise up to $30-million through a best efforts brokered private placement.
Paradigm Capital Inc. will act as sole agent on the private placement of subscription receipts. Each subscription receipt will be issued at a price of $1.10 per share for gross proceeds of up to $30-million.
Each subscription receipt will entitle the holder thereof to receive, without payment of any additional consideration, one unit of the company, consisting of one common share of the company and one-half warrant. The conversion of these subscription receipts will be conditional upon the approval of existing shareholders. Each warrant shall be exercisable for a period of up to 24 months following the closing of the private placement to purchase a common share at a price of $1.65.
Eric Sprott has agreed to invest up to $20-million in the private placement. Upon conversion of his subscription receipts into units, his interest in the company will increase to approximately 35 per cent, assuming the private placement is fully subscribed.
The agent shall have the option to increase the size of the private placement by up to 15 per cent of the base private placement size, in which the agent's option shall be exercisable, by notice in writing to the company, at any time not less than 48 hours prior to the closing of the private placement.
The private placement is subject to regulatory approval, including, but not limited to, approval of the Toronto Stock Exchange, and all securities issued pursuant to the private placement will have a hold period of four months and one day.
The company intends to use the net proceeds from the private placement to finance continuing exploration, to update the company's technical studies and for general corporate purposes.
About Freegold Ventures Ltd.
Freegold is a company focused on exploration in Alaska and holds, through leases, the Golden Summit gold project, near Fairbanks, as well the Shorty Creek copper-gold project near Livengood.
We seek Safe Harbor.
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