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VANCOUVER, BC, March 17, 2025 /CNW/ - Freegold Ventures Limited (TSX: FVL) (the "Company" or "Freegold Ventures"), is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. (the "Agent"), in connection with a proposed best efforts private placement financing (the "Offering") for total proceeds of up to approximately $ 30 million, consisting of up to 32,295,000 units of the Company (the "Units") at a price of $ 0.85 per Unit. Each Unit will be comprised of one common share of the Company (a "Unit Share") and one half of one common share purchase warrant of the Company (each whole warrant, a "Warrant").
Each Warrant will be exercisable to acquire one common share of the Company (a "Warrant Share") for 24 months from the Closing Date at an exercise price of $ 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 $1.30 for a period of twenty (20) consecutive trading days, at any time during the period (i) beginning on the date that is 6 months from the closing date of the Offering, and (ii) ending on the date the Warrants expire (the "Call Trigger"). Following a Call Trigger, the Company may give notice (the "Call Notice") to the holders of the Warrants (by disseminating a news release announcing the acceleration) that any Warrant that remains unexercised by the holder thereof shall expire thirty days following the date on which the Call Notice is given.
The Company will grant the Agent an option (the "Agent's 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 (reduced to 3% on up to $1,000,000 in Units purchased by investors on the Company's "president's list").
The net proceeds from the Offering will be used for general working capital and corporate purposes.