Freeman Gold (CSE: FMAN; OTC Pink: FMANF) has upsized its private placement to US$13 million from US$10 million. The junior intends to spend the funds to advance its 100%-owned Lemhi gold project in Idaho. The property hosts a near-surface, high-grade oxide gold resource.
The company will issue approximately 37.1 million units at a price of US35¢ per unit. Each unit will consist of one common share and one-half of a share purchase warrant. Warrant holders may purchase shares for a period of five years at a price of US65¢ per share. The offering is expected to close by the end of this month.
Freeman published the initial pit-constrained resource estimate for the Lemhi project in June. The estimate includes an indicated resource of 22.9 million tonnes at 1.02 g/t gold for 749,800 oz. of gold. The inferred resource is 7.68 million tonnes at 1.01 g/t gold for 250,300 oz. of gold.
The estimate includes a surface area of 400 by 500 metres, extending to a depth of 180 metres below surface. The mineralization remains open on strike to the north, south and west as well as at depth. In calculating the numbers, the company used a US$1,500 per oz. gold price and a cutoff grade of 1 g/t gold.
Freeman says there are two types of mineralization at Lemhi. The primary source is a halo around an intrusion, and the secondary source occurs along shallow dipping folds and faults.
Perhaps the best hole at Lemhi was reported when hole FG20-008C returned 174.2 metres trading 0.9 g/t gold, including 18.5 metres at 3.9 g/t.
Find more information on www.FreemanGoldCorp.com.