McEwen takes piece of Freegold (June 18, 2007)

Vancouver – Subscribing to a lion’s share of Freegold Ventures‘ (ITF-T, FGOVF-O) $6.2-million private placement financing, U.S. Gold (UXG-T, UXG-X) chairman and CEO Robert McEwen will acquire an 8.2% position in the gold junior.

Freegold is selling 5.4-million units at $1.15 apiece with each unit composed of one share and a half-warrant. Each full warrant will be exercisable at $1.60 for two years.

Along with McEwens purchase of 4.5 million of the units, Sprott Asset Management will be acquiring 900,000 units to boost its interest in Freegold from 9.9% to 10.5%.

Funds will be earmarked to ongoing programs at Freegolds Almaden deposit in Idaho and its Golden Summit project in Alaska.

Recent resource expansion drilling at Almaden has extended mineralization to depth and expanded a hydrothermal breccia zone associated with a newly discovered feeder structure.

Drilling in the northwestern section of the Main zone has also expanded a gold-mineralized hydrothermal breccia zone associated with a newly discovered feeder structure.

An early-2006 resource estimate of Almaden tabled 22.5 million indicated tonnes grading 0.72 gram gold per tonne (about 516,000 contained oz.) plus additional inferred resources of 18.1 million tonnes of 0.62 gram gold (360,000 contained oz.).

Infill and expansion drilling of the North zone has been completed with assays pending. Once the final holes on the Main zone are completed the new resource study will incorporate the results.

Freegolds recent drilling at its Golden Summit project near Fairbanks, Alaska has cut a number of high-grade gold mineralized vein systems identified potential bulk-tonnage shear zone structures. It collected a 10,000-ton bulk sample of high-grade mineralized material in late-2006 and is awaiting permitting for onsite processing of the material expected during late-summer 2007.

Following the news of McEwens stock acquisition, shares of Freegold rallied to a new high at the $1.60-level on high volume.