Freeport Resources updates operations and completes financing, Papua New Guinea
Freeport Resources Inc. [TSXV-FRI; OTCQB-FEERF; FSE-4XH] 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, Papua New Guinea, 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 Gord Friesen, CEO.
In connection with its outreach efforts, the company has entered into a service agreement with Native Ads, Inc. which will provide a marketing campaign for a total upfront retainer of US$265,000, with a term of up to 12 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 remaining 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.
Freeport’s 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 km2 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.
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.
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, education and community development.
The Yandera Copper Project is 95-km southwest of the capital city of Madang Province and 235 km northwest of Lae which is the largest port city in PNG and an important industrial centre. As one of the largest undeveloped copper resources in the world, 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 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.
The company is conducting a non-brokered private placement of up to 140,000,000 units 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 Warrant will entitle the holder to acquire an additional common share at a price of $0.25 for a period of twenty-four months.
Freeport Resources’ primary focus is advancing the development of the Yandera copper-gold-molybdenum project, located in Madang Province, Papua New Guinea. The Yandera project covers approximately 245.5 km2.