Freegold VenturesLtd. said May 2 that it plans to raise at least C$3 million by offeringcompany units on a best-efforts basis, with Paradigm Capital Inc. as the agent.
The offering will be priced based on market conditions and thespecific details will be determined at the time of pricing.
Each unit will consist of 1 common share and a number of sharepurchase warrants, which is also yet to be determined. A whole warrant will entitlethe holder to acquire 1 common Freegold share at a certain price within 36 monthsfrom closing.
Freegold also agreed to grant the agent an overallotment optionto arrange for buyers for up to an additional 15% of the units initially sold underthe offering. The option will be exercisable in part or in full at any time up to30 days after closing.
The company plans to use the proceeds for exploration and metallurgicalwork to be completed at its GoldenSummit gold project and ShortyCreek copper project in Alaska, and for general working capital.
The financing is expected to close on or about May 19, or suchlater date as agreed upon by Freegold and the agent, subject to certain conditions,including regulatory approvals and the execution of an agency agreement.