Freegold Receives Subscription Agreements for $3.9 Million Private Placement
VANCOUVER, Aug. 23, 2011 /CNW/ --
VANCOUVER, Aug. 23, 2011 /CNW/ - Freegold Ventures Limited (TSX: FVL)
(Frankfurt: FR4N)('Freegold') is pleased to announce that it has received subscription agreements
for a non-brokered private placement of 7,218,536 ('Units'), priced @
$0.55 per Unit. Each unit will consist of one common share (a 'Share')
and one half common share purchase warrant (a 'Warrant'). Each whole
Warrant will entitle the holder to acquire an additional Share at a
price of $0.75 for a period of one year 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 $1.00 per common
share for 30 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.
Under the private placement, current Insiders purchased 62,972 Units
which, assuming exercise of the Warrants, results in 31,486 shares
being issued to such insiders, representing 0.19% of the outstanding
shares of the Company. The closing of this financing will take place as
soon as possible. A finder's fee of 8% will be paid on a portion of
the placement. The foregoing is subject to regulatory approval.
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. In addition to the Golden Summit Gold Project, the
company holds a 100% in lease interest in the Rob Gold Project near the
Pogo Gold Mine in the Goodpaster Mining District of Alaska and has an
exploration agreement with option to lease the Vinasale Gold project in
central Alaska.
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.
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Kristina Walcott-President and CEO
Telephone: 1.604.662.7307
jkw@freegoldventures.com