TSX: ITF, OTC BB: FGOVF, Frankfurt: FR4
VANCOUVER, June 18 /CNW/ - Freegold Ventures Limited (the "Company") is
pleased to announce that, subject to regulatory approval, Rob McEwen and
Sprott Asset Management have entered into subscription agreements with the
Company for the private placement of 5.4 million units at a price of C$ 1.15
per unit for aggregate proceeds of C$ 6.2 million.
Mr. McEwen is subscribing for 4.5 million units for proceeds of
C$ 5,175,000, and Sprott Asset Management, as portfolio manager for various
Sprott funds has subscribed for 900,000 units for proceeds of C$ 1,035,000.
Each unit is comprised of one common share of the Company and one-half of one
common share purchase warrant. Each whole warrant entitles the holder to
acquire one common share for C$ 1.60 for a term of two years from the date of
In addition, the Company will be issuing an additional 100,000 units on a
non-brokered basis bringing the total placement to 5.5 million units with
total proceeds of C$ 6.325 million. No finder's fee or commissions are being
paid in connection with any of these financings.
Upon completion of the placement, Mr. McEwen will own 8.2% of the
Company's issued shares. Sprott Asset Management, currently the largest
shareholder of the Company, will be increasing its stake in the Company after
completion of the placement from 9.9% to 10.5%.
Rob McEwen is Chairman and CEO of US Gold (AMEX & TSX: UXG) and Lexam
Explorations (TSX: LEX) and was the founder and former Chairman and CEO of
Goldcorp, which is the world's lowest cost million ounce gold producer. He has
been honored with such awards as the Northern Miner's Man of the Year Award,
the Prospectors and Developers Association of Canada's Developer of the Year
award, the Ernst & Young's Ontario Entrepreneur of the Year Award in the
Energy Category and was most recently recognized as Canada's most innovative
C.E.O. by Canadian Business Magazine.
Proceeds of this financing will be used to continue to fund the on-going
resource expansion drilling and economic evaluations at the Almaden Project in
Idaho, to fund the ongoing shallow and subsequent deeper drilling programs at
the Golden Summit project in Alaska, to commence new summer-fall exploration
programs on the Vinasale and Rob projects in Alaska, to fund the continued
investigation of acquisition opportunities, and for general working capital
About Freegold Ventures Limited
Freegold Ventures Limited is a North American exploration company with a
new management team experienced in mine development and production that is
actively exploring advanced-stage gold projects in Idaho and Alaska. Freegold
holds a 100% lease interest in the Almaden gold project in Idaho. This large
tonnage epithermal gold deposit was the subject of a feasibility study in 1997
calling for the development of a 95,000 oz/year open pit, heap leach mine.
Freegold is currently finalizing a 34,000-foot drilling program aimed at
further expanding the size of the resource prior to undertaking new economic
evaluations in 2007. Drilling at depth and to the north and south of the known
mineralization is continuing to identify new extensions to the deposit.
Freegold is also discovering new high-grade veins and bulk tonnage shear zones
in its 25,000-foot drill program at its Golden Summit project outside
Fairbanks, Alaska. A 10,000-ton bulk sample collected in the fall of 2006 was
successful in uncovered numerous zones of high-grade surface gold
mineralization. Pending permit completion, on-site processing of this bulk
sample material plus additional high-grade surface mineralization is expected
to commence in late summer 2007. Freegold has also recently optioned the
Vinasale Gold Deposit in Alaska, from Doyon, Limited. Geophysical, mapping and
sampling programs will be carried out on the property in 2007.
On behalf of the Board of Directors
President and C.E.O.
The TSX has neither approved nor disapproved the contents of this news
release. CUSIP: 45953B107
This news release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with the Toronto
Stock Exchange, British Columbia Securities Commission and the United States
Securities & Exchange Commission.
For further information:
For further information: Kristina Walcott, VP Corporate Development,
(604) 685-1870, 1-800-667-1870, firstname.lastname@example.org