Freegold Ventures Limited (TSX: FVL) has announced that further to its news release of 8 March 2024, the company has closed its upsized brokered private placement offering for aggregate gross proceeds of C$10,000,000). Paradigm Capital acted as sole agent on the offering.
In connection with the offering, the company entered into an agency agreement dated 26 March 2024, between the company and the agent. In accordance with the agency agreement, 25,000,000 units of the company were issued at a price of C$0.40 per unit. Each unit is comprised of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant is exercisable to acquire one common share of the company for 24 months from today’s date at an exercise price of C$0.52 per warrant share.
The company intends to use the net proceeds from the offering to fund exploration activities on the company’s mineral projects in Alaska, and for general working capital and corporate purposes.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned and controlled by him, acquired 6,750,000 Units in the offering for total consideration of C$2,700,000. Prior to the offering, Mr. Sprott beneficially owned or controlled 114,103,056 Shares and 6,875,000 warrants representing approximately 27.1% of the outstanding shares on a non-diluted basis and 28.2% on a partially diluted basis assuming the exercise of such warrants. Following the completion of the Offering, Mr. Sprott beneficially owns and controls 120,853,056 Shares and 10,250,000 Warrants representing approximately 27.1% of the outstanding shares on a non-diluted basis and 28.7% on a partially diluted basis assuming the exercise of such warrants.
The units were acquired by Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Freegold Ventures including on the open market or through private acquisitions or sell securities of Freegold Ventures including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
To read more about this, please visit www.freegoldventures.com
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