Freeport to Acquire Star Mountains Gold Project
Web: www.freeportresources.com
NEWS RELEASE September 4, 2020
Freeport to Acquire Star Mountains Gold Project
Vancouver, British Columbia – (September 4, 2020) – Freeport Resources Inc. (TSX-V: FRI)
(“Freeport”, or the “Company”) is pleased to announce that it has signed a definitive share purchase
agreement (the “Purchase Agreement”), dated effective September 4, 2020, with Quidum
Resources Inc. (“Quidum”), and all of the shareholders of Quidum (collectively, the “Vendors”),
pursuant to which the Company proposes to acquire all of the outstanding share capital of Quidum
from the Vendors (the “Transaction”).
Quidum is a privately-held company which controls Highlands Pacific Resources Limited, a
corporation established under the laws of Papua New Guinea and which owns a series of contiguous
exploration licenses located in Papua New Guinea and which are together commonly known as the
“Star Mountains Property”.
The Company is at arms-length from each of Quidum, and the Vendors. In consideration for all of
the outstanding share capital of Quidum, the Company has agreed to issue 10,000,000 common
shares. In connection with completion of the Transaction, the Company does not expect to assume
any material liabilities, nor does it expect to devote the majority of its working capital or resources to
the development of Quidum or the Star Mountains Property. As a result, the Transaction does not
constitute a fundamental acquistion for the Company, within the policies of t he TSX Venture
Exchange. The Transaction will not result in the creation of a new insider, or a change of control, of
the Company, within the meaning of applicable securities laws.
Completion of the Transaction remains subject to the approval of the TSX Venture Exchange, and
cannot be completed until such approval has been received. No finders fees or commissions are
payable in connection with the Transaction.
About the Star Mountains Property
The Star Mountains exploration tenements comprise four leases within the highly prospective New
Guinea Orogenic Belt, approximately 25 kilometres from the premier mining operation of Ok Tedi.
This belt is also home to several other significant mines including Grasberg, Porgera and Frieda
River. At least US$50 million has been spent on exploration since Star Mountains was first
discovered. In 2018 H&S Consultants Pty. Ltd. (“H&SC”) completed a maiden Mineral Resource
Estimate for the Olgal deposit within the tenements. Using a 0.3% copper cut-off grade, the deposit
is estimated to contain 210 million tonnes of Inferred Resource grading 0.4% copper and 0.4 g/t gold,
for 2.9 million ounces of contained gold and 0.84 million tonnes (1.9 billion pounds) of contained
copper. Using current prices for gold (US$1,767 per ounce of gold) and copper (US$5,885 per tonne
of copper), this is equivalent to 5.7 million ounces of gold or 1.7 million tonnes (3.8 billion pounds) of
copper. The logistics in the area are well-established and there remains significant potential for
additional discoveries within the existing tenements.
Web: www.freeportresources.com
The Mineral Resource has an effective date of February 20, 2018 and is presented in a geological
report dated June 23, 2020. The Company is not treating these historical estimates as current and
has not completed sufficient work to classify these historical estimates as current Mineral Resources.
While the Company is not treating these historical estimates as current, it does believe the work
conducted by H&SC is reliable and may be of assistance to readers.
About Freeport
Freeport is a Canadian junior exploration company with a diverse portfolio of properties -- the Red
Rose Mine (a past producer of tungsten-gold-copper), Spanish Mountain Gold (adjacent to a
proposed open-pit gold mine), and the Q (a large, well-known fluorspar deposit), all located in British
Columbia. The Hutton Garnet Beaches in Labrador, eastern Canada, has a positive NI 43-101
Prefeasibility (2004), and a 5,000 tonne bulk sample released for environmental assessment. Please
visit www.freeportresources.com or contact us for more information.
Simon Tear, P. Geo., and Arnold van der Heyden, MAIG, each Directors of H&SC, are qualified
persons for the purposes of National Instrument 43-101. Messrs. Tear and van der Heyden have
reviewed and approved the technical content in this news release.
On behalf of the Board,
Freeport Resources Inc.
Gord Friesen, Chief Executive Officer
(236) 334-1660 or [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies 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. These forward-looking statements or information may relate to the intended completion of the Transaction, the
Star Mountains Property, and other factors 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 considered 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.