Yamana Gold (TSX: YRI) has become a strategic shareholder in Freeman Gold (CSE: FMAN), with the issuer taking a 5% position in the Idaho-focused gold explorer. The position was acquired through the sale of a back-in right that Yamana previously held on five patented claims now held by Freeman Gold.
Freeman, in an effort to continue to de-risk its Lemhi project, acquired the back-in right from Yamana. The right was acquired through the issuance of 4,035,273 common shares of the issuer, which represents 5% of the issued and outstanding shares of the company.
Under the terms of the arrangement, the transfer, termination and extinguishment of the back-in right has been completed in exchange for the 4.0 million common shares. The shares are subject to a four month hold period. Yamana has also agreed to not sell more than 1% of the outstanding Freeman shares within a 30 day period for the earlier of one year and the date on which Yamana holds less than 2% of the company., without first providing Freeman with notice and a five day period to identify a buyer for the shares.
“We are delighted to welcome Yamana as a 5% strategic shareholder. Having a major gold producer with Yamana’s caliber take a significant position in our Company is a major vote of confidence in the project and the team we have assembled. We hope to work together over the coming months and years. The Transaction removes the existing back-in agreement on five of our patented claims which is a major step in de-risking the Lemhi project. The project is now free of all back-in rights.”
Will Randall, CEO of Freeman Gold Corp
Freeman Gold last traded at $0.52 on the CSE.
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