- Fremont Gold increases non-brokered private placement to 24,500,000 units
- Units valued CAD$0.06 per unit for a gross proceed of up to CAD$1,470,000
- Raised funds to be used as general working capital and a drilling program for the Griffon gold project in Nevada
- Shares were up CAD$0.005 (7.14%) and trading at CAD$0.075
Fremont Gold has upped its non-brokered private placement to finance its Griffon gold project – located southeast of Ely, Nevada – after the company said it had received strong demand from the market.
The placement was increased to 24,500,000 units at CAD$0.06 per unit for a gross proceed of up to CAD$1,470,000 from 17,000,000 units at CAD$0.06 per unit for a gross proceed of up to CAD$1,020,000.
Each unit is made up one common share and one share purchase warrant, the latter entitling the holder to purchase on common share at a price of CAD$0.10 per share for a period of 12 months after the close of the private placement.
The company has indicated it may pay a finder’s fee – in cash – of up to 7% of the gross proceeds of the placement and issue share purchase warrants to the finder’s equivalent of up to 7% of the number of common shares included in the placement.
Each of these ‘finder’s warrants’ entitles the holder to purchase on common share at CAD$0.10 for a period of up to 12 months following the close of the placement.
It also said these securities are not registered under US law and may not be offered or sold in the US absent registration or an exemption from registration requirements.
The raised funds will also be used for general working capital.
Fremont Gold acquired the Griffon gold project in December last year from Pilot Gold, with CEO Blaine Monaghan at the time describing it as a ‘top project’.
“It isn’t often that a project of this quality comes along in Nevada,” he said.
“We screened numerous advanced-stage gold projects in the Western U.S., projects with the potential to host an economic deposit with a minimum of 1.0 million ounces of gold, and Griffon emerged as the top gold project,”
“Griffon is located at the southern end of the Cortez Trend and, outside of the pit areas, is essentially untested (and) we know that Carlin deposits have the potential to be very large mineralizing systems and we look forward to testing that potential in the new year.”
Also at the time, vice president Clay Newton said the Griffon deposit was an underexplored gold system.
“Historical drill holes at Griffon were shallow, the vast majority did not exceed 100 metres in depth, and were concentrated in the two pit areas,” he said.
“I am particularly interested in drilling through the Blackrock fault, which separates jasperoid-rich Chainman shale in the hanging wall from potential known ore host units in the footwall, such as the Joana Limestone, an overlying unit transitional between the Joana and the Chainman and the Pilot shale below the Joana,”
“The Blackrock fault can be traced for about 3km and has never been drilled.”
At the time of writing Fremont Gold shares were up CAD$0.005 (7.14%) and trading at CAD$0.075. It has a market capitalization of CAD$4.3 million.