/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THEUNITED STATES/
VANCOUVER, BC, Oct. 16,
2024 /CNW/ - Freeman Gold Corp. (TSXV:
FMAN) ("Freeman" or the "Company") is
pleased to announce that it has closed its non-brokered private
placement financing (the "Non-Brokered Private Placement")
of 60,000,000 Units of the Company (each, a "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. No commissions or finder
fees were paid on this financing.
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 an 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.
Insiders of the Company participated in the Offering by
purchasing an aggregate of 7,750,00,000 Units. As such, the
transaction constitutes a "related party transaction" within the
meaning of Multilateral Instrument 61-101 – Protection of Minority
Security holders in Special Transactions ("MI 61-101"). The
Company has relied on the exemptions from the formal valuation and
minority shareholder approval requirements of MI 61-101 contained
in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related
party participation in the Offering as neither the fair market
value of the subject matter of, nor the fair market value of the
consideration for, the transaction, insofar as it involves the
related parties, exceeded 25% of the Company's market
capitalization. The Company did not file a material change report
more than 21 days before the closing of the Offering as the details
of the participation therein by related parties of the Company had
not been determined until shortly prior to closing of the
Offering.
The securities offered have not been registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any state securities laws and may not be offered or
sold absent registration or compliance with an applicable exemption
from the registration requirements of the U.S. Securities Act and
applicable state securities laws.
Chairman Paul Matysek commented:
"I am excited to be working with Bassam at the executive management
level again to unlock the deeply discounted value in the Lehmi gold
project. I am honoured to be part of a team that previously sold
both Gold X Mining Corp and Goldrock Mines for $365 million and $179
million, respectively. Bassam was solely instrumental in
restructuring the debt which ultimately led to the sale of Gold X
to Gran Columbia Gold Corp. Additionally, he also led the Goldrock
Mines Corp project financing and prior to that led two equity
financings that raised funds at 100% premium to the share price
prior to its acquisition by Fortuna Silver Mines Inc. for
$179. I am pleased by the
commitment of the directors, management and insiders that
participated in this private placement and welcome our two new
significant shareholders who participated for $1.7 million of the $3.6
million of the private placement."
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 recently completed Preliminary Economic Assessment (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
For further information, please visit the Company's
website
at www.freemangoldcorp.com
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.
Forward-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.