Fremont Gold Announces Private Placement
Fremont Gold Announces Private Placement
Vancouver, British Columbia--(Newsfile Corp. - March 21, 2018) - Fremont Gold Ltd.
(TSXV: FRE) (OTC Pink: USTDF)
("
Fremont
" or the "
Company
") is pleased to announce the offering of a non-brokered private placement of up to 7,500,000
common shares at a price of $0.16 per common share for gross proceeds of up to $1,200,000 (the "
Private Placement
").
The securities offered will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and
may not be offered or sold in the United States absent registration or an exemption from the registration requirements.
This
press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful.
Proceeds of the Private Placement will be used for a minimum total 1000m phase 1 drill program at the Gold Bar and Gold
Canyon properties (see Fremont press release dated March 5, 2018) starting in mid-late April depending on snow
conditions
Management have developed new structural targets at Gold Bar, which hosts a historic resource of 147,000 Au
1
(see
Fremont News Release dated September 12, 2018).
At Gold Canyon the company will be following up targets north of the historic pit where a hole drilled by Atlas Precious
Metals Inc. ("
Atlas
") in the 1990's intersected 18.3m (60 ft) @ 3.48 g/t Au
2
.
The Company intends to apply for a drill permit for Hurricane with a view to drilling later in the year.
Fremont may pay a finder's fee of up to 7% of the gross proceeds raised in connection with the Private Placement.
Closing of
the Private Placement and the payment of any finder's fees will be subject to the approval of the TSX Venture Exchange.
All
securities issued pursuant to the private placement will be subject to a four month hold period under Canadian securities laws
and the policies of the TSX Venture Exchange, as applicable.
Background
Fremont's Gold Bar and Gold Canyon projects are adjacent to McEwen Mining Inc.'s ("
McEwen
") Gold Bar development project
(McEwen's development project and Fremont's property share the same name, however, the historic Gold Bar mine is controlled
by Fremont).
The Gold Bar mine produced 286,354 ounces of gold from 1986 to 1994
3
and is five kilometres southwest of McEwen's project.
It contains a historic resource of 147,000 ounces @ 2.57 g/t Au called the Millsite deposit
1
thought to be a faulted off-set of the
former Gold Bar ore body (see Fremont press release dated September 12, 2017) located on the northwest side of the old pit.
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral
reserves and Fremont is not treating the resource as current mineral resources or mineral reserves.
Location of Fremont's Gold Bar and Gold Canyon projects
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McEwen's Gold Bar development project comprises four of the five former satellite pits located five kilometres northeast of the
original Gold Bar mine operated by Atlas and were active in the early 1990's.
The fifth satellite pit called Gold Canyon, was
recently acquired by Fremont.
The Gold Canyon property comprises 260 hectares, is surrounded by McEwen and is 800 metres
from McEwen's nearest pit.
The five former satellite pits collectively produced approximately 198,846 ounces of gold, including
approximately 41,000 ounces from Gold Canyon
4
.
Mineralization at Gold Canyon is controlled by a northeast trending high angle feeder structure.
Recent rock chip sampling of this
structure from the north east end of the pit returned values of up to 9.15 g/t Au (see Fremont press release dated January 16,
2018).
This mineralized zone clearly trends to the north east out of the pit and is most likely the mineralized structure intersected
in historical Atlas drill hole #100-45 which returned 60 feet grading 0.112 oz/ton Au (18.3m @ 3.48 g/t Au) within the North Gold
Ridge target zone
2
.
Fremont intends to expand this mineralized zone by drilling the initial holes in this area and has identified a
number of prospective structural and near-pit mineralized zones at the original Gold Bar mine which will be drilled as well.
On behalf of the Board of Directors,
"Dennis Moore"
President and CEO
Telephone:
778-772-9892
Email:
or
www.fremontgold.net
About Fremont Gold Ltd.
Fremont holds exclusive rights to the Hurricane and Gold Bar-Gold Canyon Projects, located respectively in Lander County and
Eureka County, Nevada.
Fremont also holds rights to the Goldrun Project in the Adelaide mining district, Humboldt County,
Nevada and the North Carlin Project
1
Resources were calculated using a 100 x 100 x 15 ft. blocks using a 0.25 oz/ton (0.775g/t) cutoff grade, and a 100 ft search
radius2. The resource
categories used by Atlas at the time are not the same as those used by the Canadian Institute of Mining
and Metallurgy, but were those used by the company to classify mineability of ore in the mid 1990's. Atlas Corporation, Gold Bar
Review, January 1997
2
Ely Gold Royalties fact sheet based on Telesto 2010
3
Internal report, Atlas Precious Metals, Mines, Dec 13, 1995, prepared by Pincock, Allen & Holt
4
Atlas-Granges Joint Venture, 1996, Year End Report, 17p
Dennis Moore
President and CEO
Telephone:
778-772-9892
Email:
or
www.fremontgold.net
Neither 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.
This press release contains "forward-looking information" that is based on the Company's current expectations, estimates,
forecasts, and projections. This forward-looking information includes, among other things, statements with respect to the
Company's proposed private placement and exploration and development plans. The words "will", "anticipated", "plans",
"intends", "strategy" or other similar words and phrases are intended to identify forward-looking information. There is no
guarantee that the Company's planned drill program will proceed as stated.
Forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity,
performance, or achievements to be materially different from those expressed or implied by such forward-looking information.