Freegold Announces $30 Million Placement, Sprott To Take 66% Of Financing
Freegold Ventures Limited (TSX: FVL) last night announced that it is conducting a $30 million best efforts brokered private placement to fund ongoing exploration of the companies properties. Most significantly, mining magnate Eric Sprott has indicated that he intends to take down a majority of the raise himself.
The private placement will see subscription receipts sold at a price of $1.10 per receipt, with each receipt to convert to one unit of the company. Each unit consists of one common share and one half warrant of the company, with each warrant having an expiry of 24 months and a conversion price of $1.65 per share.
An over allotment also exists, allowing the company to expand the placement by up to 15% in the 48 hours following the closing of the placement.
Paradigm Capital has agreed to be the sole agent on the financing, with Eric Sprott indicating that he intends to invest up to $20 million in the placement himself. Upon conversion of the receipts, Sprott would own approximately 35% of the company assuming that the placement is fully subscribed.
Funds from the raise will be used for ongoing exploration, to update technical studies conducted on Freegold’s properties, and for general corporate purposes.
Freegold Ventures last traded at $1.20 on the TSX.
Information for this briefing was found via Sedar and Freegold Ventures. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
