VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 5, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCQX:NFRGF)(FRANKFURT:8N6) has closed the first tranche of the private placement announced on April 3, 2013. A total of 13,768,333 units (the "Units") have been completed for gross proceeds of CDN $826,100.
Each Unit consists of one common share and one-half of one non-transferable common share purchase warrant (the "Warrants"). Each whole 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 20-day volume-weighted average trading price (VWAP) of $0.15 cents 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 Company.
Northern Freegold intends to use the net proceeds from the private placement on the Company's mineral properties and for general working capital.
Eagle Plains Resources Ltd. ("Eagle Plains") through its wholly owned subsidiary TerraLogic Exploration Inc. ("TerraLogic") has subscribed for CDN $500,000 or 8,333,333 Units. Northern Freegold and Eagle Plains have certain directors and/or executive officers in common. These individuals abstained from voting on the transaction.
A total of CDN $5,964 was paid in finders' fees in connection with the first tranche of the financing. Finders' fees were not paid for the TerraLogic portion of the private placement.
All of the securities issued in connection with the private placement are subject to a hold period expiring August 6, 2013. The private placement is subject to the approval of the TSX Venture Exchange.
On behalf of the Board of Directors
John Burges, President and CEO