Freeport Announces Private Placement Upsize

Rhea-AI Summary

Freeport Resources has increased its non-brokered private placement offering due to market demand. The offering now totals up to 140,000,000 units at $0.05 per unit, aiming for $7,000,000 in gross proceeds. Each unit includes one common share and one-half common share purchase warrant, with each warrant allowing purchase of an additional share at $0.25 within 24 months.

To date, 88,697,220 units have been issued, bringing in $4,434,861. The final tranche, subject to TSX Venture Exchange approval, is expected by June 28, 2024. Securities issued will have a resale restriction of four months and one day.

Positive

• Increased offering size to 140,000,000 units due to market demand.
• Potential gross proceeds of $7,000,000 from the offering.
• Warrants allow purchase of additional shares at $0.25, potentially increasing future investments.
• Already raised $4,434,861 from 88,697,220 issued units, reflecting strong investor interest.

Negative

• Final tranche subject to TSX Venture Exchange approval, adding uncertainty.
• Resale restrictions for four months and one day may limit immediate liquidity for investors.

Vancouver, British Columbia--(Newsfile Corp. - June 17, 2024) - Freeport Resources Inc. (TSXV: FRI) (OTCQB: FEERF) (FSE: 4XH) ("Freeport Resources" or the "Company") is pleased to announce that due to market demand it has elected to increase the size of its ongoing non-brokered private placement offering (the "Offering"). The Offering will now consist 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 consists of one common share and one-half-of-one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire an additional common share of the Company at a price of $0.25 for a period of twenty-four months.

The Company has issued a total of 88,697,220 Units to date, in earlier tranches of the Offering, for gross proceeds of $4,434,861. Completion of a final tranche of the Offering remains subject to the approval of the TSX Venture Exchange and is expected to occur on or before June 28, 2024. All securities issued in connection with the Offering will be subject to restrictions on resale for a period of four-months-and-one-day in accordance with applicable securities laws.

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 or gord@freeportresources.com
E. gord@freeportresources.com
www.freeportresources.com

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. 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213326

FAQ

What is the size of Freeport's increased private placement offering?

Freeport's increased private placement offering is up to 140,000,000 units.

What is the price per unit in Freeport's private placement offering?

The price per unit in Freeport's private placement offering is $0.05.

What are the gross proceeds expected from Freeport's private placement offering?

The expected gross proceeds from Freeport's private placement offering are up to $7,000,000.

What does each unit in Freeport's offering consist of?

Each unit consists of one common share and one-half common share purchase warrant.

What is the exercise price for the warrants in Freeport's offering?

The exercise price for the warrants is $0.25 per additional share.

How many units has Freeport issued to date in the offering?

Freeport has issued 88,697,220 units to date.

What is the total amount raised so far from Freeport's offering?

The total amount raised so far is $4,434,861.

When is the final tranche of Freeport's offering expected to complete?

The final tranche is expected to complete on or before June 28, 2024, subject to TSX Venture Exchange approval.

What are the resale restrictions on securities issued in Freeport's offering?

Securities issued will have resale restrictions of four months and one day.