Northern Freegold Resources Ltd.
TSX VENTURE : NFR

Northern Freegold Resources Ltd.

July 16, 2007 18:12 ET

Northern Freegold Increases Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) announces that due to the amount of interest in its recently-announced financing, it has increased the amount of funding to be raised from $4,000,000 to $4.600,000. Northern Freegold intends to complete a non-brokered private placement to arms-length and non arms-length investors. As reported earlier the flow-through units are priced at $CDN 0.80 per unit and non-flow-through units are at a price of $CDN 0.70 per unit. Each flow-through unit will consist of a flow-through common share and one-half of a non-flow-through purchase warrant, each whole warrant exercisable at $CDN 1.10 for an 18-month period. Each non-flow-through unit will consist of a common share and one-half of a non-flow-through purchase warrant, each whole warrant exercisable at $CDN 1.10 for an 18-month period. Allocation of flow-through and non-flow through units will be determined by market interest.

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 non-flow-through 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 July 20, 2007.

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, the Burro Creek property in Arizona and for general working capital. The flow-through unit expenditures will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2007 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 and the Burro Creek Property in Arizona.

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.
    William G. (Bill) Harris
    President and Chief Executive Officer
    (604) 893-8757
    (604) 893-8758 (FAX)
    Website: www.northernfreegold.com