- Fremont Gold (FRE) is looking to raise C$1 million in a private placement backed by Vancouver-based merchant bank Palisades Goldcorp
- The company intends to issue up to 20 million units at a price of $0.05 each, consisting of one common share and one purchase warrant
- Each warrant will be exercisable at a price of $0.10 per share for a period of 36 months
- The proceeds will be used to fund a drilling program at the company's North carlin Project as well as further exploration at the Cobb Creek Project
- Fremont Gold (FRE) is currently down 7.69 per cent to six cents per share at 11:14am EDT
Fremont Gold (FRE) is looking to raise C$1 million in a private placement backed by Vancouver-based merchant bank Palisades Goldcorp.
Under the terms of the placement, the company intends to issue up to 20 million units at a price of $0.05 each. These units will consist of one common share in Fremont Gold and one common share purchase warrant.
Each warrant will entitle the holder to acquire an additional common share at a price of $0.10 over a period of 36 months from the date of issuance.
Palisades Goldcorp has agreed to purchase half of the units on offer for a total of $500,000.
Fremont Gold says it will use the proceeds to fund a 1,500-metre drilling program at its North Carlin Project in Nevada, which is expected to begin later this year.
The company currently has permits for ten drill sites, which will focus on targets identified through previous soil geochemistry, gravity and geomagnetic surveys, and the projection of key faults that control gold mineralisation within the prolific Carlin Trend.
A portion of the proceeds will also be used to carry out further exploration work at the company's Cobb Creek Project, which Fremont Gold has the option to wholly acquire under an agreement with Clover Nevada II, a subsidiary of Contact Gold.
Cobb Creek is considered largely unexplored, and has seen little exploration work since it was last drilled in 1992. While there is limited historical data, some of the better drill results include 15.3 metres at 2.86 grams per tonne of gold and 33.5 metres at 1.92 grams per tonne of gold.
Blaine Monaghan, CEO of Fremont Gold, said he is pleased to welcome Palisades Goldcorp as a significant shareholder.
"Palisades' involvement will enable us to drill North Carlin, located at the northern end of the prolific Carlin Trend, later this fall, and conduct exploration at Cobb Creek, which hosts a historic resource, next spring.
"We are excited to get to work as we believe that there is excellent potential for the discovery of a Carlin-type deposit at both North Carlin and Cobb Creek," he added.
Fremont Gold (FRE) is currently down 7.69 per cent and is trading at six cents per share at 11:14am EDT.