Freeman Gold Corp (CSE: FMAN) this morning announced that it is conducting a bought deal private placement for proceeds of $6.5 million. The financing is being conducted by a syndicate of underwriters, co-lead by Canaccord Genuity and Stifel GMP.
The impressive part of the financing, is the fact that there is no warrant attached. Rather, the bought deal is for a total of 13,000,000 common shares at a price of $0.50 per share. Aggregate gross proceeds are to come in at $6.5 million, however the underwriters have been granted an option to purchase an additional 1.95 million shares for additional proceeds of $0.98 million.
The offering is expected to close on July 15, with gross proceeds from the funding to be used for further exploratory work at Freeman’s Idaho-based Lemhi Gold project, as well as its Comstcock property in BC. Any additional funds will be used for working capital and general and administrative expenses.
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Freeman Gold last traded at $0.61 on the CSE.
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