- Mining legend Paul Matysek appointed Executive Chairman to lead the next phase of growth and value generation
- Strategic non-brokered private placement to be completed for gross proceeds of up to $3 million
VANCOUVER, BC, Sept. 1, 2021 /CNW/ – Freeman Gold Corp. (CSE: FMAN) (OTCQB: FMANF) (FSE: 3WU) (“Freeman” or the “Company“) is pleased to announce it has appointed Mr. Paul Matysek as the Company’s Executive Chairman.
Mr. Matysek’s unique qualifications, experience and unprecedented string of successful transactions in the mining sector will create value for the Company as it advances its Lemhi Gold Project. As members of the Strategic Advisory Committee, Mr. Matysek, along with Freeman CEO William Randall and CFO Bassam Moubarak, were instrumental in significantly de-risking the Lemhi project by consolidating the ownership structure and completing a maiden National Instrument 43-101 (“NI 43-101“) compliant resource. These major milestones position the Company as 100% owner of one of the few remaining undeveloped large, high-grade oxide gold deposits in the United States (see Freeman news release dated July 8, 2021).
Mr. Matysek is a geologist/geochemist by training, a successful alpha entrepreneur and consistent creator of shareholder value with over 40 years of experience in the mining industry. Since 2004, as either CEO or Executive Chairman, Mr. Matysek has sold six publicly listed mineral exploration and development companies, in aggregate worth over $2.5 billion.
Most recently in June 2021, as Chief Executive Officer, he sold Gold X Mining Corp. to Gran Colombia Gold Corp. for over $250 million in an all-share transaction. In March 2018, as Executive Chairman, he sold Lithium X Energy Corp. to Nextview New Energy Lion Hong Kong Limited for $265 million in cash. Earlier, in July 2016, Mr. Matysek, as President and CEO, sold Goldrock Mines Corp. to Fortuna Silver Mines Inc. He was also previously CEO of Lithium One Inc., which merged with Galaxy Resources Limited of Australia to create a multi-billion-dollar integrated lithium company. He served as CEO of Potash One Inc., which was acquired by K+S Ag for $434-million cash in a friendly takeover in 2011. Mr. Matysek was also the co-founder and CEO of Energy Metals Corp., a uranium company that grew from a market capitalization of $10 million in 2004 to approximately $1.8 billion when sold in 2007.
Mr Matysek commented: “I am very pleased to join Freeman Gold as its Executive Chairman. The Lemhi Gold Project’s location, grade and exploration potential create a unique and timely opportunity to realize deep value for mid-tier developers and producers. Working with the board and management of the Company, I am devoting considerable time, energy and capital on this Project. I firmly believe that together we can unlock significant asset value by updating the metallurgy, upgrading and expanding the mineral resources, securing necessary permits and advancing the Company’s socioeconomic initiatives.
I am especially grateful to again be working closely with Will Randall and Bassam Moubarak. I am fortunate to have worked with both Mr. Randall and Mr. Moubarak at Lithium X and on two other transactions with Mr. Moubarak, most recently on Gold X Mining and on Goldrock Mines in 2016. I am also pleased by the commitment of the directors, management and insiders that took the majority of the private placement that will finance continued work at the Lemhi project.”
Mr. Will Randall stated: “Freeman Gold’s management is excited that Paul has agreed to move from his position on the Advisory Board to the role of Executive Chairman. I am confident that all investors in Freeman Gold will benefit from the addition of his energy, experience and expertise to the Company’s executive team.”
Mr. Ronald Stewart has resigned from the Board of Directors effective immediately. The Company wishes to thank Mr. Stewart for his contributions to the Company during his time as a director.
The Company is also announcing a non-brokered private placement of up to 11,538,462 units (the “Units“) at a price of $0.26 per Unit for gross proceeds of up to $3 million. Each Unit consists of one common share of the Company (“Share“) and one Share purchase warrant entitling the holder to purchase one Share at $0.35 for a period of three years from the date of issuance (“Warrant“). The Warrants are subject to an acceleration clause whereby the warrant must be exercised within 30 days should the share price trade at $0.80 or higher for ten consecutive trading days.
The Company intends to use the proceeds for resource development, exploration, engineering and environmental studies at it 100% owned Lemhi Project and for general corporate activities.
Completion of the private placement is subject to the acceptance by the Canadian Securities Exchange. The securities issued by the Company in connection with this offering will be subject to a four-month “hold period” as prescribed by applicable securities laws.
In addition, the Company has granted 3,700,000 stock options to certain directors, officers and consultants of the Company with each stock option exercisable into a Share at a price of $0.40 for a period of five years.
About the Company
Freeman Gold Corp. is a mineral exploration company focused on the development of its 100% owned Lemhi Gold property (the “Lemhi Project“). The Lemhi Project comprises 30 square kilometers of highly prospective land. The project hosts a near surface, shallow, high grade oxide gold resource. The pit constrained NI 43-101 compliant mineral resource estimate is comprised of 749,800 oz gold (“Au“) at 1.02 grams per tonne (“g/t“) in 22.94 million tonnes (Indicated) and 250,300 oz Au at 1.01 g/t Au in 7.83 million tonnes (Inferred). The Company is focused on growing and advancing the Lemhi Project towards a production decision. The technical content of this news release has been reviewed and approved by Dean Besserer, P.Geol., VP Exploration of the Company and a Qualified Person as defined by NI 43-101.
On Behalf of the Company
President and Chief Executive Officer
Forward Looking Statements: This press release contains “forward–looking information” or “forward-looking statements” within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to completion of the private placement offering, use of proceeds raised from the private placement offering and the Company’s future business plans. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ from those in the forward-looking statements. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions. The Company does not undertake to update forward–looking statements or forward–looking information, except as required by law.
Neither Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this release.