Freeman raising $3.6 million for Idaho gold feasibility study
Freeman Gold Corp. [FMAN-TSXV, FMANF-OTCQX, 3WU-FSE] has arranged a non-brokered private placement financing that is expected to raise $3.6 million, money that will be used to fund an initial feasibility study on the company’s Lemhi Gold Deposit in eastern Idaho.
The private placement will consist of 60 million units priced at $0.06 per unit. Each unit will consist of one common share and one transferable common share purchase warrant entitling the holder to acquire one common share of the company for $0.08 for nine months from the issue date. The non-brokered private placement is fully allocated and is expected to close on October 11, 2024.
Freeman shares were unchanged at $0.085. The shares are currently trading in a 52-week range of 19 cents and $0.065 cents.
Freeman Gold is a exploration company with a focus on the development of its 100%-owned Lemhi Gold Project, which covers 30 square kilometres of land, hosting a near surface oxide gold resource. The NI-43-101-compliant pit constrained resource stands at 988,100 ounces at 1.0 g/t gold in 30.02 million tonnes of measured and indicated material. On top of that is an inferred resource of 256,000 ounces of gold at 1.04 g/t gold in 7.63 million tonnes. The company has said it is focused on growing and advancing the project towards a production decision.
In keeping with that gold the company released the results of a preliminary economic assessment (PEA) which demonstrate that Lemhi has to potential to become a profitable low-cost gold producer, with average annual gold production of 75,900 ounces over a 11.2 lifespan. The PEA indicated that Lemhi has a life of mine payable output of 851,900 ounces of gold and average annual production of 80,100 ounces in the first eight years of production.
The PEA envisages that with an average operating cost of US$21.53 per tonne milled over the life of the mine, the operation has a cash cost of US$809 per ounce of gold and an all-in-sustaining cost of US$957 per ounce. The initial capital cost is pegged at US$190 million.
The deposit is amenable to open pit mining practises, with two years of construction followed by 12 years of operations.
Meanwhile, the company said proceeds from the non-brokered private placement will be used to finance an initial feasibility study that will build on the initial PEA, which supports the decision to advance the project to feasibility stage, permitting and construction.
If all the warrants are exercised, the company would receive an additional $4.8 million, which would cover the balance of the feasibility studies and continuing permitting-related activities.