Freegold Ventures Ltd. August 25 said it has closed its second tranche of $2 million in financing. This financing has been provided by Toronto-based Tiomin Resources Inc. and has the same terms as the first tranche of $2 million, which closed on July 31, bringing the total proceeds under this financing to $4 million. Tiomin Resources Inc. is a mining company with three main assets: $23.7 million in cash, 49 percent interest in the Pukaqaqa copper and gold project in Peru and currently 100 percent interest in the Kwale titanium project in Kenya.
In explaining why the company is investing in Freegold, Tiomin President and CEO Robert Jackson and director of Freegold, said, “The market's current lack of development capital positions Tiomin to develop strategic partnerships with good quality juniors that may lead to further debt and equity investments. The risk-adjusted return to Tiomin is attractive and this secured investment is only a small portion of our cash balance. Freegold has a highly prospective exploration portfolio in the United States and an experienced management.”
Tiomin is not the only mining company interested in Freegold.
When asked about Freegold in a recent interview with The Gold Report, Rob McEwen, founder and former chairman and CEO of Goldcorp, described the junior as, “some very good explorers with good experienced management.
“They market it well. They’ve got some interesting projects up in Alaska — one project I bid on myself, trying to joint-venture it. It had some very high-grade assay results, which they’re going to be drilling this summer. And they have two other properties they’re putting into production as well. It’s a good team, and they have the investor very much at heart,” McEwen said.
