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.
Freeman Gold last traded at $0.61 on the CSE.
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