Business
Freegold Grants South32 a 4 Year Option to Earn a 70% Interest in the Shorty Creek Copper Project for a Commitment of US$30 Million
Freegold Grants South32 a 4 Year Option to Earn a 70% Interest in the Shorty Creek Copper ...
About this update from Freegold Ventures Limited
[{"type":"text","content":"\n\n\n\nFreegold Grants South32 a 4 Year Option to Earn a 70% Interest in the Shorty Creek Copper Project for a Commitment of US$30 Million\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, March 5, 2019\n\n\n\nVANCOUVER, March 5, 2019 /CNW/ - Freegold Ventures Limited (Freegold) (FVL:TSX), is pleased to announce it has entered into an agreement with a wholly owned subsidiary of South32 Limited (South32) whereby South32 has the option to earn a 70% interest in the Shorty Creek property (the Project) located in Alaska.  To maintain the option in good standing South32 must contribute minimum exploration funding of US$10 million over a 4 year option period with minimum exploration expenditures of US$2million in Years 1 and 2 and US$3 million in Years 3 and 4 for an aggregate of US$10 million. \n\n \n \n\n \nProvided that all the exploration data and information has been made available by December 31 of each year of the option agreement, South32 shall decide within 30 days whether to fund a further tranche. The first year expenditure of a minimum US$2 million is a firm commitment. Should South32 withdraw prior to exercising its option, the option will lapse and South32 will have no further interest in or claim against the Project. \nSouth32 may exercise its option at any time following Year 1 to subscribe for 70% of the shares of a newly formed project company by committing US$30 million to the newly formed company, less the amount of exploration expenditure contributed by South32 during the option period.  \nAfter the subscription funding has been expended by the project holding company the parties will contribute funding pro rata (70/30), as contemplated by the operating agreement, which will govern the period subsequent to the option exercise. \nFreegold will act as the operator of the Project during the 4 year option period and will provide annual reports and budgets to a technical committee formed by Freegold and South32 for the purpose of reviewing and approving each year's program. \nLocated 120 km northwest of Fairbanks, the Shor...