Freegold Closes Private Placement for
$1,350,000
VANCOUVER, Aug. 12, 2015 /CNW/ - Freegold Ventures
Limited (TSX:FVL Frankfurt: FR4N) ("Freegold") is pleased to
announce that it has received subscription agreements for the
closing of a first tranche of a non-brokered private
placement of 13,500,000 ("Units"), priced at $0.10 per Unit for total proceeds of $1,350,000. Each Unit consists of one
common share (a "Share") and one-half of one common share purchase
warrant (a "Warrant"). Each whole Warrant entitles the holder
to acquire an additional Share at a price of $0.15 per Share for a period 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 $0.30 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
December 13, 2015.
With the completion of the first tranche of the private
placement Resource Capital Fund VI L.P. (RCF VI) has acquired an
11.98% ownership stake in Freegold. RCF VI is managed by Resource
Capital Funds ("RCF"), a private equity firm established in
1998 with a mining sector specific investment mandate spanning all
hard mineral commodities and geographic regions. Since inception,
RCF has supported 137 mining companies, with projects located in 44
countries and across 29 commodities. RCF is currently investing its
sixth fund with committed capital of $2.04
billion. Further information about RCF can be found on its
website (www.resourcecapitalfunds.com)
The use of proceeds will be largely directed to the completion
of an approximately 3,000 metre drill program on Freegold's Shorty
Creek Project, located near Livengood, Alaska. The Shorty Creek project hosts two
significant porphyry exploration targets.
Limited previous drilling in the area of the copper – gold
porphyry target had returned significant intervals of gold
mineralization. The area of drilling in 1989 and 1990 was
restricted to a 500m by 200 metre area. A total of 2,094 metres of
drilling were completed with a maximum hole depth of 152
metres. The presence of copper mineralization in conjunction
with gold mineralization was noted at depth in most of the historic
drill holes. Additional mapping has confirmed the presence of
quartz porphyry in the creek 30 metres below the depth of previous
drilling. Ground geophysics and soil sampling completed by
Freegold in the vicinity of the drilling has now expanded the
target area by another 500 metres to the southwest and 400 metres
to the northeast. *(It should be noted that results above are
historical in nature and do not meet current NI 43-101
standards. The Company has not verified them and they should
not be relied upon).
Another significant target was also identified as a result of
the ground geophysical and soil sampling program. 2.5 km to
the northwest of the copper – gold target the presence of a strong
chargeability anomaly coincident with strong copper values in soils
(up to 669 ppm Cu) covering a 2,000 metre x 1,000 metre area was
observed. Within the copper geochemical anomaly a strong molybdenum
core is present (up to 235 ppm Mo), which covers a 1,000 metre by
800 metre area in the central portion of the chargeability
anomaly. This represents another excellent drill target
area.
Several other strong magnetic highs have also been identified as
a result of a review of the airborne geophysical survey and will
require additional ground geophysics, geochemistry and further
geological mapping to delineate other potential drill targets
within this highly prospective property. Drilling is expected
to commence in the next two weeks.
Golden Summit Update
Freegold is continuing to work toward the completion of its
Preliminary Economic Assessment (PEA) on its road accessible Golden
Summit Project near Fairbanks,
Alaska. The Golden Summit project hosts an indicated
resource of 79,800,000 t grading 0.66 g/t for a total of 1,683,000
oz gold and an inferred resource of 248,060,000 t grading 0.61 g/t
for a total of 4,841,000 oz gold 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 gold and the inferred
resource is 16,620,510 t grading 0.47 g/t for a total of 253,000 oz
gold. The resource was prepared in compliance with NI 43-101. 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. The
oxide cap is contained largely within the upper 200 feet (60
metres) of the resource. To date resource drilling has been
confined to a 300 metre by 1.5 km area (approx. 110 acres) however
the entire Golden Summit project area covers 13,000 acres area and
hosts numerous other significant exploration targets with potential
to host additional resources, all of which have an oxide cap in the
upper 200 feet (60 metres).
The Qualified Person who has reviewed the technical disclosure
contained in this release is Alvin
Jackson, P Geo-- VP Exploration and Development for the
Company.
The foregoing private placement is subject to regulatory
approval.
The Company would like to thank all its Shareholders for their
continued support.
About RCF
RCF has a strong team of technically diverse investment
professionals, with wide ranging industry expertise and
demonstrated history of investments in mining globally. RCF's track
record is based on its ability to pick technically and commercially
compelling assets and support management to achieve desired
outcomes whilst remaining throughout a source of patient capital.
RCF aims to partner with companies to build strong, successful and
sustainable businesses and in doing so strives to earn superior
returns for all shareholders.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on exploration in
Alaska and holds the Golden Summit
Gold Project, near Fairbanks as
well as a 100% lease interest on the Shorty Creek Copper –Gold-
Molybdenum Project near Livengood.
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