$10,000,000 invested by BARRICK !!!!!!!!!!!!
International Freegold Mineral Dev Inc - News Release
Barrick invests in Freegold for Golden Summit development
International Freegold Mineral Dev Inc
ITF
Shares issued 15921092
1997-05-14 close $0.85
Tuesday May 20 1997
News Release
Mr Harry Barr reports
International Freegold has signed an agreement with Barrick Gold Corp which
provides for the investment by Barrick of up to $10,000,000 in equity of Freegold
in stages through to March 1 2000. 95% of the proceeds will be spent on
exploration and development of Freegold's Golden Summit project, 20 miles north
of Fairbanks, Alaska.
Barrick's investment will be structured as follows:
1. The purchase of $750,000 of Freegold's existing special warrant financing,
composed of one share at $0.70 and one-half of a share purchase warrant at
$0.95;
2. The investment of $750,000 in a simultaneous series C special warrant on the
same terms as the special warrants which will also provide Barrick the right to
receive the property warrants as described below. If Freegold has not had its
special warrant prospectus receipted within 150 days of closing the financing,
Barrick has the option to redeem the series C special warrant but continue the
remaining property warrants for a consideration of $75,000; and
3. If Barrick has exercised the share purchase warrants described above, it will
then have the right to exercise the following property warrants as follows:
a)
A 1998 property warrant to purchase 1,200,000 shares of Freegold at $1.25
until March 1 1998;
b)
A 1999 property warrant to purchase 1,714,286 shares of Freegold at $1.75
until March 1 1999, provided the 1998 property warrant has been exercised;
and
c)
A 2000 property warrant to purchase 1,200,000 shares of Freegold at $2.50
until March 1 2000, provided that the 1999 property warrant has been
exercised.
If Barrick invests the entire $10,000,000 described above by March 1 2000, it
will have the option to earn a 51% interest in the Golden Summit project by
making a production election by April 30 2002. Barrick will then have a further
option to earn an additional 19% interest, for a total interest of 70%, by taking
Golden Summit to commercial production.
A technical advisory committee composed equally of representatives from
Freegold and Barrick will be meeting shortly to examine the currently proposed
1997 Golden Summit exploration budget and to make final recommendations and
adjustments. Details of the exploration programs will be released as soon as
practicable. |
