Mining News: News Nuggets: Freegold raises C$7.28M; funds Alaska exploration

Freegold Ventures Ltd. May 20 reported closing a C$7.28 million financing in which it issued 40,461,766 units at C18 cents each. Each unit consists of one Freegold common share and half of a purchase warrant. Each whole warrant entitles the holder to purchase one Freegold share at C25 cents for a period of three years. Freegold also granted Paradigm Capital Inc., the financing agent, an option to arrange for purchasers to acquire up to an additional 15 percent of the units issued pursuant to the offering. This option, which will cover over-allotments and provide for market stabilization, will be exercisable for 30 days. Freegold intends to use the net proceeds of the financing for gold exploration and metallurgical work at its Golden Summit and Shorty Creek projects in Interior Alaska and for general working capital purposes.

- Shane Lasley