Freegold Ventures Limited (TSX: FVL) announces that further to its news release of July 9, 2020, the Company has closed its fully subscribed brokered private placement for gross proceeds of $34,500,070 including over-allotment proceeds. Paradigm Capital acted as sole agent on the Private Placement.
In connection with the Private Placement, the Company entered into an agency agreement dated July 29, 2020, between the Company and the Agent. Pursuant the Agency Agreement, the Private Placement consisted of subscription receipts of the Company of which the Company issued 27,272,800 Subscription Receipts at a price of $1.10 per Subscription Receipt and granted the Agent an over-allotment option to increase the size of the Private Placement by up to an additional 15%. Including the over-allotment option, the Company issued an aggregate of 31,363,700 subscription receipts.
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.
Mr. Eric Sprott has invested $20 million in the Private Placement. Upon conversion of his Subscription Receipts into Units, his interest in the Company will increase to approximately 32%.
The Private Placement is subject to regulatory approval 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 fund ongoing exploration, to update the Company’s technical studies, and for general corporate purposes.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any U.S. state security laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Golden Summit Drilling Update
A Phase 1 – 10,000 metre drill program (approximately 15-20 holes) is currently in progress and is presently on hole GSDL20-05. Hole GSDL20-02, located 150 metres to the east of GSDL20-01 was completed as planned. Holes GSDL 20-03 and GSDL 20-04 were drilled 50 metres east and west of GSDL 20-01 respectively. Drilling is now focusing on systematically testing the areas to the north, west and east of the initial 2020 drilling in a series of step out holes. Due to the COVID-19 pandemic there continues to be significant delays at the preparatory facility. No assays have been received by Freegold and are not expected to be received before mid to late August.
Planning is underway for the addition of a second rig at the end of August. Drilling can be undertaken year-round at Golden Summit. Freegold may adjust its exploration program plans as it continues to monitor the COVID-19 situation and in the interim has implemented extensive safety protocols designed to assist minimizing the spread of COVID-19 and to protect its contractors, employees and community.
About Freegold Ventures Limited
Freegold is a TSX listed 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.
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