- Fremont Gold (FRE) has raised C$2 million in a placement backed by Palisades Goldcorp to fund drilling work at its gold projects in Nevada, USA
- The company issued a total of 40 million units at a price of $0.05 each, comprised of one common share and one share purchase warrant
- Each warrant will be exercisable at a price of $0.10 for a period of 36 months from the date of issuance
- A drill program at the company’s North Carlin gold project is expected to begin later this month, and at the Cobb Creek gold project early next year
- Fremont Gold (FRE) is currently steady at 5.5 cents per share
Fremont Gold (FRE) has raised C$2 million in a placement backed by Palisades Goldcorp to fund drilling at its gold projects in Nevada.
Under the terms of the offering, the Vancouver-based company issued a total of 40 million units at a price of $0.05 each. These units are comprised 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 in the company at a price of $0.10, exercisable over a period of 36 months from the date of issuance.
Fremont says the proceeds raised will be used to fund a drill program at its 42-square-kilometre North Carlin Project later this month, as well as a separate drill program at its Cobb Creek Project early next year.
The company has established a number of targets at the North Carlin Project based on previous soil geochemistry, gravity and geomagnetic surveys, and plans to drill a minimum of three reverse circulation holes over a total of 1,500 metres.
Cobb Creek, on the other hand, has not been drilled since 1992 and is considered largely underexplored. However, Fremont believes that there is significant potential to expand a historical resource estimate at the McCall deposit published in 2004.
Blaine Monaghan, CEO of Fremont Gold, said the financing was well-received and has provided the company with the resources to carry out its planned exploration work.
“Permitting is well underway at North Carlin and drilling should be underway later this month.
“We are excited to get started as we have developed a number of untested drill targets located in the right geological setting for the discovery of a major gold deposit,” he added.
Fremont Gold (FRE) is currently steady at 5.5 cents per share, as of 9:33am EST.