Freegold Ventures Limited (TSX: FVL) has entered into an agreement with Paradigm Capital Inc. in connection with a proposed best efforts private placement financing for total proceeds of up to approximately C$30M, consisting of up to 32,295,000 units of the company at a price of C$0.85 per unit.
Each unit will be comprised of one common share of the company and one half of one common share purchase warrant of the company.
Each warrant will be exercisable to acquire one common share of the company for 24 months from the closing date at an exercise price of C$1.30 per warrant share. The warrants shall be callable by the company should the daily volume-weighted average trading price of the common shares of the company on the Toronto Stock Exchange exceed C$1.30 for a period of 20 consecutive trading days, at any time during the period (i) beginning on the date that is six months from the closing date of the offering, and (ii) ending on the date the warrants expire (call trigger).
Following a call trigger, the company may give notice to warrant holders that any remaining warrants unexercised by the holder thereof shall expire 30 days following the date on which the call notice is given.
Additionally, the company will grant the agent an option to sell up to that number of additional units equal to 15% of the base offering size, exercisable by notice in writing to the company at any time not less than 48 hours prior to the closing date.
The agent will be paid by the company on closing of the offering a cash commission equal to 6% of the gross proceeds of the offering including on any exercise of the over-allotment option.
The net proceeds from the offering will be used for general working capital and corporate purposes.
To find out more, please visit www.freegoldventures.com
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