Business
Freegold Ventures Limited and Western Standard Metals Ltd. Agree to Terminate Proposed Merger and Vinasale and Golden Summit Option Agreements
Freegold Ventures Limited and Western Standard Metals Ltd. Agree to Terminate Proposed Merger and...
About this update from Freegold Ventures Limited
[{"type":"text","content":"\n\n\n\n Jul. 8, 2010 (Canada NewsWire Group) -- Freegold Ventures Limited (ITF: TSX) wishes to announce that further to news releases dated February 17 and April 5, 2010, merger discussions with Western Standard Metals Ltd ("Western Standard") have been terminated.\nAdditionally, Freegold has consented to the termination of both the Vinasale and Golden Summit Option Agreements with Western Standard. As Western Standard will have expended in excess of US $1.2 million on the Vinasale and Golden Summit projects in project expenditures and option payments since January 2010, Freegold, in exchange for an early termination by Western Standard has agreed to issue to Western Standard 6 million common shares of Freegold or an equivalent corresponding number following a proposed share consolidation by Freegold. The foregoing is subject to regulatory approval. By negotiating an early termination to the option agreements whereby Western Standard could earn a 50% interest in the projects Freegold believes it will be in a better position to advance and finance the projects.\nFurther to the above listed events, Ms. Kristina Walcott has tendered her resignation from the Board of Directors of Western Standard.\nOne of the five lenders under Freegold's equipment loan facility has demanded repayment of the amount of $206,286.75 owing to him and that as a result Freegold is in default under such facility. The aggregate amount outstanding under such facility is currently approximately $1.5 million. The security under the loan is limited to certain land and equipment owned by Freegold and does not involve any of Freegold's exploration properties. None of the other lenders has demanded repayment to date and no enforcement proceedings have been commenced under the loan agreement. Freegold is in discussions with all of the equipment lenders with a view to reaching repayment arrangements satisfactory to them.\n\nAbout Freegold Ventures Limited\n\nFreegold is a TSX listed company focused on the exploration of gold projects in Alaska. In addition to the Golden Summit Gold Project, the company holds a 100% in lease interest in the Rob Gold Project, near the Pogo Gold Mine in the Goodpaster Mining District of Alaska and has an exploration agreement with option to lease the Vinasale Gold project in central Alaska.\n\nFREEGOLD VENTURES LIMITED.\n\n&...