===========================================================================
From: Intl. Freegold Mineral Development Inc. (ITF)
augoldgroup.com
mailto:info@augoldgroup.com
---------------------------------------------------------------------------
Re: News Release - Wednesday, April 12, 2000
Announces Brokered Private Placement
===========================================================================
The management of International Freegold Mineral Development Inc.
("Company") is pleased to announce that the Company has recently entered
into an engagement letter with Haywood Securities Inc. (the "Agent") for a
proposed private placement ("Private Placement") of up to 6,750,000 special
warrants (each a "Special Warrant") of the Company at a purchase price of
$0.75 per Special Warrant for a total of $5,062,500. The Agent has an
option to increase the offering to $7,500,000. Each Special Warrant
consists of one share and one share purchase warrant. The issue is
comprised of $2,062,500 flow through Special Warrants and $3,000,000 non
flow through Special Warrants. The flow through Special Warrants shall
consist of a flow through share and non flow through share purchase
warrant.
Each Warrant will entitle the holder thereof to purchase an additional
Share of the Company for a period of 12 months from the closing date at a
purchase price of $0.90.
The Company will use its best efforts to file with the appropriate
securities commissions, and obtain receipt (the "Final Receipt") for, a
final prospectus no later than the date (the "Qualification Date") which is
120 days from the Closing Date of the offering of the Special Warrants.
Each Special Warrant which has not been previously exercised will be deemed
to be exercised on the date which is five business days after the issuance
of the Final Receipt. If the Final Receipt is not obtained on or before
the Qualification Deadline a 5% penalty shall be payable to the investors
in shares. 50% of the funds will be released on closing and 50% upon
clearance of the Prospectus. In the event that any Special Warrants are
exercised prior to issuance of the Final Receipt, the Shares and Warrants
issuable upon exercise of such Special Warrants will be subject to resale
restrictions under applicable securities laws.
The Company will pay 7.5% cash commission to the Agent and be paid from
working capital; a Corporate Finance Fee of 20,000 shares; and Agents
Warrants of 675,000 warrants to acquire shares at $0.75 per share for one
year. Each warrant is exercisable for one common share.
It is expected that the proposed Private Placement, which is subject to
regulatory approval, will close during May 2000. Proceeds of the issue of
the Special Warrants will be paid to the Company on the Closing Date and
shall not be required to be held in escrow. The Company intends to utilize
the net proceeds from this Private Placement, to develop the Company's
platinum group metals projects in Alaska and Ontario and to maintain and
further develop the Company's two gold projects in Alaska and Idaho and for
general working capital.
The Company's proposed Private Placement is subject to directors and all
regulatory approvals.
Freegold is listed both on the Toronto Stock Exchange and The Canadian
Venture Exchange, and has received 20F clearance in the United States.
Harry Barr, President
FOR FURTHER INFORMATION PLEASE CONTACT:
International Freegold Mineral Development Inc.
Harry Barr
President
(604) 685-1870
(604) 685-8045 (FAX)
Website: www.augoldgroup.com
Email: goldgroup@info-mine.com
The Toronto & Canadian Venture Exchanges have neither approved nor
disapproved the contents of this news release.
DISCLAIMER
This news release contains certain "Forward-Looking Statements" within the
meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company's
expectations are disclosed in the Company's documents filed from time to
time with the Canadian Venture Exchange, British Columbia Securities
Commission and the United States Securities & Exchange Commission
===========================================================================
Copyright (c) 2000 INTL. FREEGOLD MINERAL DEVELOPMENT INC. (ITF) All
rights reserved. For more information visit our website at
augoldgroup.com or send mailto:info@augoldgroup.com
Message sent on Thu Apr 13, 2000 at 6:49:57 AM Pacific Time
===========================================================================
Advanced Internet Communication Systems and Services provided by ADNET
Communications Inc. Our goal is to facilitate and enhance your
communications by providing advanced services and technology. Visit us on
the web at adnet-inc.net |
