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Gold/Mining/Energy : Int'l Freegold Mineral Development Inc./ITF/VSE -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bartlett who wrote (202)	4/7/1998 7:55:00 AM
From: Mr Logic	Read Replies (1) \| Respond to of 298

Mark, the options are not entirely straightforward: the question is, did Barrick exercise the March 1 1998 warrants at $1.25? If they didn't then they are unable to exercise the 1999 and 2000 warrants. I should really find out, but I must admit after the big fall in the POG last year, I did some rationalising andI ended up with a range of metals/precious metals stocks in a proverbial drawer to be opened in a couple of years - so I am not really close to ITF. All the best. 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.