Press Release!
Harry Barr, President of International Freegold Mineral Development Inc ("Freegold") is pleased to announce the signing of an agreement, subject to final Vancouver Stock Exchange approval, with Barrick Gold Corporation ("Barrick") which provides for the investment by Barrick of up to $10,000,000 in equity of Freegold in stages through to March 1, 2000. Under the terms of the agreement, 95% of the proceeds will be spent on exploration and development of Freegold's Golden Summit Project, located 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-halfof 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. In the event that 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. In the event that 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 an exercise price of $1.25 per share until March 1, 1998;
b) a 1999 Property Warrant to purchase 1,714,286 share of Freegold at an exercise price of $1.75 per share until March 1, 1999, (provided that the 1998 Property Warrant has been exercised); and
c) a 2000 Property Warrant to purchase 1,200,000 shares of Freegold at an exercise price of $2.50 per share until March 1, 2000, (provided that the 1999 Property Warrant has been exercised).
In the event that 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 program will be released as soon as possible.
(Signed)
Harry Barr
Robert Douglas Hickey
Manager, Investor Relations |
