A private placement will give International Freegold Mineral Development (VSE) additional funds with which to explore its Golden Summit property near Fairbanks, Alaska.
La Teko Resources (NASDAQ) is purchasing the placement, which consists of 750,000 units at 24 cents each. (A unit includes a share plus a warrant.) The placement is additional to another 750,000-unit placement purchased by La Teko last year, at 42.5 cents per unit. Freegold will have just under 5 million shares outstanding upon completion of the placement, and if La Teko exercises all its related warrants it will hold more than 20% of Freegold’s outstanding shares.
Freegold can earn a 60% interest in Golden Summit, which adjoins both La Teko’s True North gold deposit and Cyprus Amax’s (NYSE) Fort Knox gold deposit.
The property, which contains several old lode producers, yielded more than 510,000 oz. gold in the past. A 1995 exploration budget has yet to be determined.
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