Eric Sprott Announces Holdings in Freegold Ventures Limited

Toronto, Ontario--(Newsfile Corp. - July 29, 2020) - Eric Sprott announces that, on July 29, 2020, 2176423 Ontario Ltd., (a corporation which he beneficially owns) purchased 18,181,900 subscription receipts of Freegold Ventures Limited, on a private placement basis, at a price of $1.10 per subscription receipt for aggregate consideration of $20,000,090. Each subscription receipt entitles the holder thereof to receive, without payment of any additional consideration, one unit, comprised of one common share (share) and one-half of one share purchase warrant. Each such whole warrant will entitle the holder thereof to purchase one share until two years following the closing of the private placement as further described in the press release of Freegold Ventures issued on July 29, 2020. The conversion of such subscription receipts is conditional upon the approval of the shareholders of Freegold Ventures. This acquisition will result in a beneficial ownership increase in holdings of approximately 4.1% on a partially diluted basis from what was reported in the last early warning report.

Prior to the above acquisition, Mr. Sprott beneficially owned and controlled 38,916,278 shares, 17,146,389 share purchase warrants and 21,850,326 subscription receipts, representing approximately 15.9% of the outstanding shares on a non-diluted basis and approximately 21.4% on a partially diluted basis assuming exercise of such warrants. The subscription receipts entitle the holder thereof to receive, without payment of any additional consideration, one share and one-half of one share purchase warrant as further described in the press releases of Freegold Ventures issued on May 26, 2020 and June 2, 2020. The conversion of these subscription receipts is also conditional upon the approval of shareholders.

Freegold Ventures has filed a notice on SEDAR indicating that its annual and special meeting of shareholders will occur on September 15, 2020. If the shareholders approve the conversion of the foregoing subscription receipts at such meeting and the subscription receipts are converted, Mr. Sprott will beneficially own and control 78,948,504 shares and 37,162,502 share purchase warrants representing approximately 26.0% of the outstanding shares and approximately 34.0% of the outstanding shares on a partially diluted basis assuming exercise of such warrants and that all 59,047,026 subscription receipts that were issued by Freegold Ventures on or about May 26, 2020, June 2, 2020 and July 29, 2020 (including 2176423 Ontario's subscription receipts) are converted into shares and warrants.

Mr. Sprott has acquired the subscription receipts through 2176423 Ontario for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Freegold Ventures including on the open market or through private acquisitions or sell securities of Freegold Ventures including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Freegold Ventures is located at 888 - 700 West Georgia Street, Vancouver, British Columbia, V6Y 1G5. A copy of 2176423 Ontario's early warning report will appear on Freegold Venture's profile on SEDAR at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 362-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/60787