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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (148165)	2/23/2009 5:41:04 PM
From: Goose94	Read Replies (1) \| Respond to of 313061

News Feb 23, '09 Freegold Ventures (ITF-T) has reached an agreement with its bridge lenders to further extend the maturity date of its $4.1-million (U.S.) in bridge loans to July 15, 2009. As consideration of these extensions, the interest rate on the two loans is being increased from 12.5 per cent to 15.0 per cent, and the lenders will be receiving extension fees consisting of 720,000 common shares of the company, one million warrants to purchase common stock of the company for a two-year period at a price of 25 cents per share and a cash fee equal to 3 per cent of loan principal, payable upon the earlier of the receipt of new financing or March 31, 2009. Negotiations are continuing with Freegold's equipment lenders regarding certain waivers required to maintain the original May 30, 2010, maturity date, and to remove an early repayment right that was provided to the equipment lenders (see news in Stockwatch dated May 20, 2008). This $1.79-million (U.S.) loan was put in place to allow the company to complete its purchase of equipment for its 1,200-ton-per-day portable processing plant, and is secured by 302 acres of private property, which was purchased adjacent to the Golden Summit property, and all of the company's processing equipment at Golden Summit, which includes a crushing circuit (primary impact crusher and secondary cone crusher), a grinding circuit (three ball mills), a gravity-based gold recovery circuit (four Knelson concentrators), 1.2 megawatts of portable diesel power generation, plus assorted support and materials handling equipment. Steve Manz, president and chief executive officer of Freegold, commented: "We are grateful that our bridge lenders have provided us with the additional time we need in which to refinance the company. We are continuing to assess a variety of funding alternatives, and are pleased to see a definite turn in the market with an increase in the number of junior gold explorers recently having raised fresh debt and equity in this rising gold market. We continue to believe that our portfolio of North American-based gold projects are among the best advanced-stage projects currently being explored within the junior resource sector. Although our efforts over the past few months have focused on our refinancing, we have continued to compile and assess the results from our extensive work programs in 2008, and will be providing new project updates shortly."