Freeman Gold Corp (CSE: FMAN) yesterday had a major announcement, in that it has appointed a new executive chairman. Mining legend Paul Matysek, whom has over four decades of experience in the space, will be championing the role.
Matysek is defined as a “successful alpha entrepreneur” by the company, with his track record including over $2.5 billion in aggregate sales of publicly listed junior resource firms since 2004. Among his major transactions are the recent sale of Gold X Corp, where he was CEO, to Gran Colombia Gold (TSX: GCM) for $250 million, and the sale of Lithium X for $265 million three years ago.
A geologist by trade, Matysek is expected to create significant value for the company as it continues to develop its flagship Lemhi Gold project in Idaho. Previously, he worked with the firm as a member of the strategic advisory committee, wherein he was involved with assembling the maiden resource of the company.
Commenting on the project itself, Matysek stated, “The Lehmi Gold Project’s location, grade and exploration potential create a unique and timely opportunity to realize deep value for mid-tier developers and producers.” He then continued this by adding, “I firmly believe that together we can unlock significant asset value by updating the metallurgy, upgrading and expanding the mineral resources, securing necessary permits and advancing the Company’s socioeconomic initiatives.”
The company yesterday also announced that it will be conducted what it refers to as a strategic private placement, with the firm raising up to $3.0 million via the sale of units of the company. Each unit is priced at $0.26 per unit, with each unit containing one common share and one common share purchase warrant.
Each warrant under the offering has an exercise price of $0.35, and is valid for a period of three years. They are also subject to an acceleration clause should the equity trade above $0.80 for a ten consecutive days.
Proceeds from the financing are to be used for resource development, as well as engineering and environmental studies, and further exploration.
Freeman Gold last traded at $0.41 on the CSE.
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