Northern Freegold Announces $8 Million
Private Placement
Northern Freegold
Resources Ltd. (NFR: TSX-V) is pleased to announce that it intends to
complete a non-brokered private placement of up to 22,857,142 units
at a price of $0.35 per unit, for gross proceeds of up to $8
million. Each unit will consist of a common share and a share
purchase warrant, each warrant being exercisable to acquire an additional
share at $0.45 for 18 months following the closing.
Net proceeds from the private placement will be
applied towards advancement of the Company's Yukon mineral properties and
for general working capital purposes.
The company will pay commissions and finders fees of 7% in cash and 7% in finder warrants
in connection with the financing. The finder warrants will have the
same terms as the warrants forming part of the units.
If requested by finders, the company may accept
subscriptions of up to an additional 25% of the offering, for additional
gross proceeds of up to $2 million. The additional offering would
involve the issuance of up to 5,714,285 additional units.
Northern Freegold is a
Canadian-based precious metals exploration and development company that
brings local expertise and strong management to focus on the development
of economic mineral resources on the district-scale Freegold
Mountain gold and copper project in the Yukon and the Burro Creek gold
and silver property in Arizona.
This press release shall
not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any state in which such
offer, solicitation or sale would be unlawful. The securities have
not been registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.