Excerpted from Freegold NR:
Vancouver, BC, Canada, -- October 1, 2009 -- Western Standard Metals Ltd. (TSX-V: WSM) ("Western Standard") and Freegold Ventures Limited (TSX: ITF) ("Freegold") are pleased to announce that further to the news release dated September 8, 2009, Western Standard has completed the acquisition of a 100% interest in Freegold's Almaden gold project located in Idaho (the "Almaden Project"). In consideration, Western Standard has issued:
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4 million common shares to Freegold;
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1 million common shares to Tiomin Resources Inc. ("Tiomin);
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a cash payment of USD$2.9M to Freegold's secured bridge debt holder; and
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500,000 warrants exercisable at CAD$0.30 per share until September 30, 2011 to the bridge debt holder.
Tiomin which holds a secondary secured debt in the amount of US$2,329,000 over the assets of Freegold has converted approximately two-thirds of its debt into a total of 16,714,773 shares of Freegold, as a result of which Tiomin will hold 19.99% of the outstanding shares of Freegold. Additionally, the issuance by Western Standard of 1,000,000 common shares to Tiomin reduces the debt balance to $854,974 which will be repayable, by Freegold, over a two year term and will bear an annual interest rate of 6%. Tiomin will also have the right to nominate one member to Freegold's Board of Directors.
