July 8th, 2010 (Vancouver, British Columbia), 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.
Additionally, 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.
Further to the above listed events, Ms. Kristina Walcott has tendered her resignation from the Board of Directors of Western Standard.
One 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.
About Freegold Ventures Limited
Freegold 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.
FREEGOLD VENTURES LIMITED.
President and CEO
DISCLAIMER - This press release contains “forward-looking information” within the meaning of Canadian securities laws including, without limitation, statements and information regarding the intention of Western Standard and Freegold (the “Companies”) to complete the Amalgamation and exploration plans for the Companies’ properties. Such forward-looking information reflects the current expectations or beliefs of the Companies. Forward-looking information is subject to a number of risks, assumptions and uncertainties that may cause the actual results of the Companies to differ materially from those discussed herein, including the possibility that future exploration results will not be consistent with the Company’s expectations, the uncertainties involved in interpreting exploration results, other inherent risks in the mineral exploration and development industry and the possibility that the Companies will not be able to negotiate a definitive agreement with respect to the Amalgamation, that they will not receive necessary regulatory and shareholder approvals and that other conditions to the completion of the amalgamation may not be satisfied. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other form of forward-looking information will not be achieved by the Companies. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although the Companies believe that the expectations reflected in such forward-looking statements and information are reasonable, the Companies can give no assurance that such expectations will prove to be correct. The forward-looking statements and information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified herein, the Companies have made assumptions regarding, among other things, their ability to conduct exploration activities in a timely manner and in accordance with the their drilling programs, the availability and costs of financing, the degree of risk that credit approvals may be delayed or withheld, and other risks and uncertainties described elsewhere in this document or in the Companies’ other filings with Canadian securities authorities. Such forward-looking information speaks only as of the date on which it is made and, unless required by applicable securities laws, the Companies undertake no obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.