/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.
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.