Freeport Financing and Operational Update
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Freeport Financing and Operational Update
• Freeport has raised $4.4M thus far in its ongoing private placement and will undertake a final
closing in late June.
• Freeport has commenced an Internal Project Optimization Review while it continues discussions
with Strategic Partners to advance its 100%-owned Yandera Project.
• Copper prices continue to be strong at approx. US$9,800/t ($4.40/lb) as demand for copper
undergoes an unprecedented structural change driven by the global energy transition.
• Proximity to Asia, the world’s largest copper refiner and consumer, positions the Yandera Copper
Project as an attractive potential long-term source of copper supply.
Vancouver, Canada, June 24, 2024 - Freeport Resources Inc. (TSXV: FRI) (OTCQB: FEERF ) (FSE: 4XH )
(“Freeport Resources” or the “Company”) is pleased to announce that it has raised approximately $4.4
million thus far in the ongoing private placement with a final tranche expected to close at the end of June.
With the recent Yandera license renewal through 2025 and funds from the private placement , the
Company has commenced an internal project optimization review while discussions continue with
potential strategic partners to advance the Yandera Copper Project to a Definitive Feasibility Study.
“The current financing has been well received by investors with an additional and final tranche expected
by month-end. Funds raised will be used for general working capital purposes and to advance work on the
internal project optimization review and to continue discussions and outreach to prospective strategic
partners. Yandera is one of the world’s largest undeveloped copper projects and ranks as the largest
undeveloped copper project in Asia, the world’s leading copper refiner and consumer. Over USD $200
million has been expended on the project since 2005, culminating in a comprehensive 2017 Pre-Feasibility
Study delineating one of the world’s largest undeveloped copper resources.* With the extension of the
exploration license through November 2025, timing for this fund raising and internal optimization review
is ideal. We are excited to have re- commenced work on the project in parallel with ongoing discussions
involving potential strategic partners to advance the project through Definitive Feasibility Study and
development of the mine. We look forward to updating shareholders as discussions progress ” commented
Mr. Gord Friesen, Chief Executive Officer, Freeport Resources.
In connection with its outreach efforts, the Company has entered into a service agreement with
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Native Ads, Inc. (“Native Ads”) dated June 20, 2024, pursuant to which Native Ads will provide a
marketing campaign for a total upfront retainer of US$265,000, with a term of up to twelve
months or until the retainer is depleted. Under the agreement, Native Ads will execute a
comprehensive digital media advertising campaign for the Company, where approximately 75%
of the campaign budget will be allocated to cost per click costs, media buying and content
distribution, and search engine marketing. The remain ing budget will be allocated for content
creation, web development, advertising creative development search engine optimization,
campaign optimization, and reporting and data insights services. Native Ads is a full- service
advertising agency based out of New York and Vancouver, BC. Native Ads is arm's length to the
Company and holds no interest, directly or indirectly, in the securities of the Company or any
right to acquire such an interest. The engagement of Native Ads is subject to the approval of the
TSX Venture Exchange.
Yandera – One of the World’s Largest Undeveloped Copper Projects
Freeport Resources’ wholly-owned Yandera Copper Project is located in the highly prolific PNG Orogenic
Belt, the same geological arc as some of the world's largest gold and copper deposits including Grasberg,
Frieda River, Porgera, Lihir, Wafi- Golpu and Kainantu. Yandera is a project of strategic national interest
in PNG and has the potential to become one of the country's most significant copper mines. The project’s
proximity to Asia, the world’s largest copper refiner and consumer, positions Yandera as an attractive
potential long-term source of copper supply.
The renewed license EL 1335 covers a 245.5 square kilometer (“km”) tenement comprising the Yandera
Project. Approximately USD $200 million in exploration and development expenditures have been spent
on EL 1335 since 2005. Work completed and studies funded to date include approximately 154,600
meters of exploration drilling, the vast majority of which has focused on the Yandera Central deposit, as
well as scoping studies, engineering studies, environmental studies, the 2017 Pre-Feasibility Study*, and
infrastructure-related studies.
The 2017 Pre-Feasibility Study titled, Independent Technical Report on the Yandera Project - Pre-
Feasibility Study*, prepared by Worley Parsons, with an effective date of November 27, 2017, estimated
a historical open -pit, Measured and Indicated Resources of 728 million tonnes grading 0.39% copper
equivalent.
The internal project optimization review is part of Freeport Resources’ ongoing strategic review process
aimed at maximizing the value of the Yandera Copper Project which the Company believes is significantly
undervalued based on historical expenditures, current copper prices and the potential for resource
expansion. The Company’s internal project optimization review will be led by Dr. Nathan Chutas, Senior
Vice-President of Operations, who helped manage the 2017 Pre-Feasibility Study.
* Independent Technical Report on the Yandera Project – Pre-Feasibility Study, prepared for Era Resources Inc. and
dated effective November 27, 2017. The study was prepared prior to the Company acquiring an interest in the
Yandera Project, and is derived from historical estimates which the Company is not treating as current. This
information is intended to provide readers with context on historical analysis conducted on the Yandera Project,
however the Company cautions that a qualified person has not done sufficient work to classify any historical
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estimates in respect of the Yandera Project as current and any analysis conducted by previous owners of the
Project may rely upon assumptions which are no longer reasonable or accurate in the context of the current
market.
Yandera – Feasibility Study
The renewal of EL 1335, through November 19, 2025, allows Freeport Resources to commence work on a
Definitive Feasibility Study to advance the Yandera Copper Project toward a Final Investment Decision.
Concurrent with the Definitive Feasibility Study program planning, Freeport Resources has begun
discussions with key international strategic investors and prospective partners for development of the
Yandera Copper Project. Demand for copper is undergoing unprecedented structural change driven by
the global energy transition with mined copper supply forecast to enter a deficit position starting as early
as 2025 (see Copper Supply and Demand Imbalance Chart below).
Copper Mine Supply vs Demand
The Definitive Feasibility Study will build on earlier work undertaken with local and regional communities
to determine opportunities to achieve mutually beneficial partnerships and sustainable long- term social
benefits related to job creation, indigenous advancement, health and wellness, environment, educatio n
and community development.
Freeport and the Community
The Yandera Copper Project is 95-km southwest of the capital city of Madang Province and 235-km to the
northwest of Lae which is the largest port city in PNG and an important industrial center. As one of the
largest undeveloped copper resources* in the wo rld, the Yandera Project has the potential to support
communities and create jobs along the Yandera Corridor. The Company anticipates the potential
economic influence of the Yandera Copper Project could span 5 provinces and create wealth for
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generations including, but not limited to, strategic road and highway building, power generation and
related infrastructure.
The landowners and communities of Yandera are stakeholders in the Yandera Project. The overwhelming
community support that the Company received at the Warden’s Hearing held during the summer of 2023,
demonstrated the level of commitment the people of Yandera have for the project. Freeport is also firmly
committed to advancing the project and continuing support of the community. The Company expects to
continue to develop initiatives to be an active and visible presence in the Community.
Private Placement
The Company is conducting a non-brokered private placement (the “Offering”) of up to 140,000,000 units
(each, a “Unit”) at a price of $0.05 per Unit for gross proceeds of up to $7,000,000. Each Unit will consist
of one common share of the Company and one-half-of-one share purchase warrant (each whole warrant,
a “Warrant”). Each Warrant will entitle the holder to acquire an additional common share at a price of
$0.25 for a period of twenty-four months.
Proceeds from the Offering are expected to be used to continue development of the Yandera Copper
Project, to advance the project optimization review, and for general working capital purposes.
In connection with completion of the Offering, the Company may pay finders’ fees to eligible third parties
who have assisted in introducing subscribers to the Offering. All securities issued in connection with the
Offering will be subject to resale restrictions for a period of four-months-and-one-day following issuance,
in accordance with application securities laws. Completion of the Offering remains subject to the approval
of the TSX Venture Exchange.
Qualified Person
Dr. Nathan Chutas, PhD, CPG, Senior Vice -President of Operations for Freeport Resources, is a qualified
person for the purposes of National Instrument 43 -101. Dr. Chutas has reviewed and approved the
technical content in this announcement.
About Freeport Resources Inc.
Freeport Resources is a Canadian mineral exploration company with a primary focus on advancing the
development of the Yandera copper-gold-molybdenum project, located in Madang Province, Papua New
Guinea. The Yandera project is one of the largest undeveloped copper-gold deposits in the world covering
approximately 245.5 square kilometers.
Please visit www.freeportresources.com or contact the email address below for more information.
On behalf of the Board,
Freeport Resources Inc.
Gord Friesen, Chief Executive Officer
T. (236) 334-1660
www.freeportresources.com
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of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward- Looking Statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or
if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”,
“forecast”, “may”, “schedule”, “intends” and similar words or expressions identify forward- looking
statements or information. Such statements represent the Company’s current views with respect to future
events and are necessarily based upon a number of assumptions and estimates that, while consi dered
reasonable by the Company, are inherently subject to significant business, economic, competitive, political
and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause
results, performance or achievements to be materially different from the results, performance or
achievements that are or may be expressed or implied by such forward-looking statements. The Company
does not intend, and does not assume any obligation, to update these forward- looking statements or
information to reflect changes in assumptions or changes in circumstances or any other events affecting
such statements and information other than as required by applicable laws, rules and regulations.