Vancouver's Western Standard Metals Ltd. (TSX-V:WSM) plans to acquire an Idaho gold project from Vancouver's Freegold Ventures Ltd. (TSX:ITF).
Western Standard will issue five million of its common shares and assume Freegold's primary secured bridge debt of approximately US$2.9 million in consideration for 100% interest in the Almaden gold project in western Idaho.
The deal remains subject to a number of closing conditions, including consent of Freegold's primary bridge lender, release of all security over Freegold's assets held by the lender and consent of Tiomin Resources Inc., which holds a secondary secured debt of US$2.3 million over Freegold's assets.
Tiomin has agreed to convert approximately two-thirds of its debt into 16.7 million Freegold shares, giving Tiomin a 19.99% stake in Freegold.
Western Standard's share price range during the past week: $0.165 and $0.275; 52-week high: $0.50; 52-week low: $0.05.
Freegold's share price range during the past week: between $0.115 and $0.14; 52-week high: $0.57; 52-week low: $0.085.