VANCOUVER, Sept. 12, 2014 /CNW/ - Freegold Ventures Limited
(TSX:FVL Frankfurt: FR4N) ("Freegold") is pleased to
announce that it has received subscription agreements for the
closing of a non-brokered private placement of 5,000,000 ("Units"),
priced at $0.20 per Unit for total
proceeds of $ 1 million. Each
Unit will consist of one common share (a "Share") and one common
share purchase warrant (a "Warrant"). Each Warrant will
entitle the holder to acquire an additional Share at a price of
$0.25 per Share for a period of 24
months and at a price of $0.30 per
Share for a period of an additional 12 months for a total of 36
months from the date of closing. Each Warrant is subject to
accelerated expiry provisions such that if at any time after the
expiry of any resale restriction governing the subscribed Shares,
the Corporation's common shares trade on the TSX at or above a
volume weighted average trading price of $0.50 per common share for 10 consecutive trading
days, the Company may give notice to the holders that each Warrant
will expire 30 days from the date of providing such notice.
All securities issued bear a legend restricting resale until
January 12, 2015.
A finder's fee of 8% cash or 7% cash + 7% broker/finder's
warrants will be paid on a portion of the placement. The
foregoing is subject to regulatory approval.
Under the private placement, current Insiders purchased 424,000
Units which, assuming exercise of the Warrants, results in 848,000
shares being issued to such insiders, representing 1% of the
outstanding shares of the Company.
The Company would like to thank its Shareholders for their
continued support.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on the exploration of
gold projects in Alaska. Its
flagship project is the Golden Summit Gold Project where a
Preliminary Economic Assessment is currently underway. The Golden
Summit project hosts an indicated NI 43-101 compliant resource of
79,800,000 t grading 0.66 g/t for a total of 1,683,000 oz, and an
inferred resource of 248,060,000 t grading 0.61 g/t for a total of
4,841,000 oz using a 0.3 g/t cut-off. The indicated oxide resource
using a 0.20 g/t cutoff is 25,026,200 t grading 0.55 g/t for a
total of 439,000 oz and the inferred resource is 16,620,510 t
grading 0.47 g/t for a total of 253,000 oz. The resource estimate
was completed by Qualified Person Gary Giroux of Giroux Consultants
in June 2013. The Technical Report
documenting this estimate can be found on the Company's website or
on SEDAR under the Company's profile.
Some statements in this news release contain forward-looking
information, including without limitation statements as to planned
expenditures and exploration programs. These statements address
future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. Such factors include
without limitation the completion of planned expenditures, the
ability to complete exploration programs on schedule and the
success of exploration programs.
SOURCE Freegold Ventures Limited