By Devika Patel
Knoxville, Tenn., July 18 - Freegold Ventures Ltd. announced it will take in $17 million in a private placement of units.
The company plans to sell 17,000 units at $1,000.00 apiece. Each unit consists of a transferable senior secured note of $1,000 in principal and a transferable warrant. Each warrant is exercisable for 500 common shares at C$1.20 per share for five years.
The warrants may expire sooner if the company's shares close at C$2.40 or more for 15 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
The two-year note is secured by the company's assets and will be senior to all other security interests granted.
Settlement is expected July 31.
Proceeds will be used to continue to advance the company's Almaden, Golden Summit, Rob and Vinasale projects, for the possible acquisition of new projects containing feed material that could be processed using the company's portable 1,200 ton per day gravity-based gold recovery plant, for the retirement of the existing $1.8 million secured equipment loan and for general working capital purposes.
Freegold is an exploration company based in Vancouver, B.C.
| Issuer: | Freegold Ventures Ltd.
|
| Issue: | Units of a transferable senior secured note of $1,000 in principal and a transferable warrant
|
| Amount: | $17 million
|
| Units: | 17,000
|
| Price: | $1,000.00
|
| Warrants: | One warrant for 500 shares per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$1.20
|
| Pricing date: | July 18
|
| Settlement date: | July 31
|
| Stock symbol: | Toronto: ITF
|
| Stock price: | C$0.75 at close July 17
|
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