Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

December 05, 2006 13:08 ET

Northern Freegold Announces Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) announces that it intends to complete a non-brokered private placement to arms-length and non arms-length investors. Application will be filed with the TSX Venture Exchange (TSX-V) to sell up to 4,000,000 flow-through units of a price of $CDN 0.85 per unit, each unit consisting of a flow-through common share and a half of a non-flow-through purchase warrant, each whole warrant exercisable at $CDN 1.10 for an 18-month period.

The common share purchase warrants are subject to an accelerated expiry if, at any time following the expiry of 4 months from the date the warrants are issued, the published closing trade price of the common shares on the TSX-V is greater than or equal to $CDN 1.25 for any 10 consecutive trading days, in which event the holder will be given notice that the warrants will expire 30 days following the date of such notice. The common share purchase warrants may be exercised by the holder during the 30 day period between the notice and the expiration of the common share purchase warrants.

A 5% commission or finders fee payable in cash or 7% commission or finders fee payable in units will be paid to registered dealers or arms-length agents responsible for sourcing investors for this financing. The financing is expected to close on or before December 21, 2006.

Maximum gross proceeds of the offering are expected to be $CDN 3,400,000. The proceeds from the sale of the shares will be used to finance exploration on the company's Freegold Mountain Project in the Yukon Territory. These expenditures will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2006 taxation year.

Northern Freegold is a Canadian-based resource exploration and development company which relies on local expertise and strong management to focus on development of economic reserves on the district-scale Freegold Mountain Project in the Yukon.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

William G. (Bill) Harris, President and Chief Executive Officer

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northern Freegold Resources Ltd.
    Bernie Kennedy
    Investor Relations Manager
    (250) 489-4440 or 1-877-489-4440