Freeman Announces $3.6 Million Fully Subscribed Non-Brokered Private Placement and Change IN Management
FREEMAN ANNOUNCES $3.6 MILLION FULLY
SUBSCRIBED NON-BROKERED PRIVATE
PLACEMENT AND CHANGE IN MANAGEMENT
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE
UNITED STATES
/
VANCOUVER, BC
,
Oct. 2, 2024
/CNW/ - Freeman Gold Corp. (TSXV: FMAN) ("
Freeman
" or the
"
Company
") is pleased to announce that it has arranged a non-brokered private placement financing
(the "
Non-Brokered Private Placement
") of 60,000,000 Units of the Company ("
Unit
") at a price of
$0.06
per Unit for aggregate gross proceeds of
$3.6 million
. Each Unit is comprised of one common
share of the Company and one transferable common share purchase warrant ("
Warrant
") that
entitles the holder thereof to acquire one common share of the Company at a price of
$0.08
per
share for a period of nine months from the date of its issue. The Non-Brokered Private Placement is
fully allocated and is expected to close on or about
October 11, 2024
.
Proceeds from the Non-Brokered Private Placement will be used to fund an initial feasibility study
("
Feasibility
') on the Lemhi Gold project ("
Lemhi
'). The Feasibility study will build on the initial
preliminary economic assessment ("
PEA
") (
October 16, 2023
) showing robust economics with an
after tax NPV
(5%)
of
US$212 million
and after tax IRR of 22.8% using a base case gold price of
US$1,750
/oz. At a gold price of
US$2,600
/oz, the after tax NPV
(5%)
increases to
US$600 million
and
after tax IRR increases to 47.5%. This supports the decision to advance the Lehmi project to
feasibility stage and permitting for construction.
If all the Warrants are exercised, the Company would receive an additional
$4.8 million
which would
cover the balance of the feasibility studies and ongoing permitting related activities.
Freeman further announces changes in executive management, Mr.
William Randall
has resigned as
President and Chief Executive Officer but will remain as a director of the Company. The Company
wishes to thank Mr. Randall for his efforts over the past five years where he oversaw several drilling
programs resulting in an initial resource and initial preliminary economic assessment. Mr. Randall is
succeeded by Mr. Bassam Moubarak, the Company's current Chief Financial Officer. Mr. Moubarak
will continue to act as Chief Financial Officer while the Company undertakes a search for a
replacement.
Previously, Mr. Moubarak was Executive Vice President, CFO and Director of Gold X Mining Corp.
where he played a pivotal role in the sale of the company to Gran Colombia Gold Corp for
$365
million
and in raising over
$35 million
to acquire the option on the Toroparu project. Prior to that, Mr.
Moubarak was CFO of Lithium X Energy Corp. where he played a key role in its sale to NextView
New Energy Lion Hong Kong Limited for
$265 million
. Mr. Moubarak was also the CFO of Goldrock
Mines Corp. where he was instrumental in its sale to Fortuna Silver Mines Inc. for
$180 million
. He
was CFO of Petaquilla Minerals Ltd. where he was responsible for raising more than
$120 million
to
develop and bring into production the Molejon Gold Mine. He also played a major role in the sale of
Petaquilla Copper Ltd. to Inmet Mining Corporation for
$400 million
and negotiated the sale of
Golden Arrow Resources Corporation's 1% net smelter royalty on Gualcamayo Gold Mine to
Premier Royalty Inc. for
$17.75 million
. Furthermore, Mr. Moubarak has advised on several
structuring transactions which include private company mergers and acquisitions, go public
transactions and launching new mining ventures.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by
Dean Besserer
, P.Geo., Vice-President of Exploration of the Company and Qualified Person as
defined in National Instrument 43-101.
About the Company and Project
Freeman Gold Corp. is a mineral exploration company focused on the development of its 100%
owned Lemhi Gold property (the "
Project
"). The Project comprises 30 square kilometres of highly
prospective land, hosting a near-surface oxide gold resource. The pit constrained NI 43-101
compliant mineral resource estimate is comprised of 988,100 oz gold ("
Au
") at 1.0 grams per tonne
("
g/t
") in 30.02 million tonnes (Measured & Indicated) and 256,000 oz Au at 1.04 g/t Au in 7.63
million tonnes (Inferred). The Company is focused on growing and advancing the Project towards a
production decision.
The PEA shows: an after-tax NPV(5%) of
US$212.4 million
and IRR of 22.8% using a base case
gold price of
US$1,750
/oz; Average annual gold production of 75,900 oz Au for a total life-of-mine
("LOM") 11.2 years payable output of 851,900 oz Au; LOM cash costs of
US$809
/oz Au; and, all-in
sustaining cash costs ("AISC") of
US$957
/oz Au using an initial CAPEX of
US$190 million
.
On Behalf of the Company
Bassam Moubarak
Chief Executive Officer
Tel: 604-618-4919
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
F
orward-Looking Statements:
This press release contains "forward
looking information or
statements" within the meaning of Canadian securities laws, which may include, but are not limited
to statements relating to exploration, results therefrom, and the Company's future business plans.
All statements in this release, other than statements of historical facts that address events or
developments that the Company expects to occur, are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are generally, but not always, identified
by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company believes the expectations expressed in such forward-
looking statements are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ from those in the forward-looking statements.
Such forward-looking information reflects the Company's views with respect to future events and is
subject to risks, uncertainties, and assumptions. The reader is urged to refer to the Company's
reports, publicly available through the Canadian Securities Administrators' System for Electronic
Document Analysis and Retrieval+ (SEDAR+) at
www.sedarplus.ca
for a more complete
discussion of such risk factors and their potential effects. The Company does not undertake to
update forward
looking statements or forward
looking information, except as required by law.
SOURCE
Freeman Gold Corp.
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For further information:
For further information, please visit the Company's website at
www.freemangoldcorp.com or contact Mr. Bassam Moubarak at by email at
CO: Freeman Gold Corp.
CNW 16:59e 02-OCT-24