Northern Freegold Announces Closing of Final Tranche of Over-Subscribed Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 23, 2013) -
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Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCQX:NFRGF)(FRANKFURT:8N6) ("Northern Freegold" or the "Company") is pleased to announce that subject to TSX Venture Exchange acceptance, it has closed its second and final tranche of the private placement announced on April 3, 2013, for $737,400 by the issuance of 12,289,999 units at $0.06 per unit (the "Units"). Together with the first tranche of the offering Northern Freegold has raised aggregate gross proceeds of $1,563,500 by the issuance of 26,058,332 Units. The financing was initially announced for up to $1 million but was increased due to demand.
Each Unit consists of one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant ("Warrant") is exercisable to acquire an additional common share at $0.10 for 36 months. In the event that the Company's common shares trade at a twenty-day volume-weighted average trading price ("VWAP") of $0.15 or greater on the TSX Venture Exchange (or such other exchange on which the shares may be listed) at any time after four months and one day after the Closing Date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Issuer.
Northern Freegold intends to use the net proceeds from the private placement on the Company's mineral properties and for general working capital.
A total of $44,856.00 in finders' fees were paid in connection with the second and final tranche of the private placement.
All of the securities issued are subject to a hold period expiring August 24, 2013.
About Northern Freegold
Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCQX:NFRGF)(FRANKFURT:8N6) trades in Canada on the TSX Venture Exchange under the symbol "NFR" and in the United States on OTCQX under the symbol "NFRGF". Northern Freegold is a rapidly advancing Canadian-based precious metals exploration and development company. Northern Freegold brings wide-ranging expertise and strong management to focus on the development of its district-scale Freegold Mountain gold and copper project in the Yukon and the Burro Creek gold and silver property in Arizona.
On behalf of the Board of Directors,
John Burges, President and CEO