Freeport Closes Fourth Tranche of Private Placement

Rhea-AI Summary

Freeport Resources has successfully closed the fourth tranche of its non-brokered private placement, raising $1,508,850. The company issued 30,177,000 units at $0.05 per unit. Each unit comprises one common share and one-half of a common share purchase warrant, with each full warrant allowing the purchase of an additional common share at $0.25 until May 31, 2026. In connection with this tranche, the company paid finders' fees of $600 and issued 12,000 share purchase warrants to certain arms-length parties. All securities issued are subject to resale restrictions until October 1, 2024. The company has received an extension from the TSX Venture Exchange to complete the offering by June 14, 2024.

Positive

• Freeport Resources raised $1,508,850 from the fourth tranche of its private placement.
• The company issued 30,177,000 units at a price of $0.05 per unit.
• Each unit includes one common share and one-half of a common share purchase warrant.
• Each full warrant allows the purchase of an additional common share at $0.25 until May 31, 2026.
• Freeport Resources received an extension from the TSX Venture Exchange to complete the offering by June 14, 2024.

Negative

• Payment of finders' fees of $600 and issuance of 12,000 share purchase warrants to arms-length parties.
• All securities issued under this tranche are subject to resale restrictions until October 1, 2024.
• Potential share dilution due to the issuance of 30,177,000 units.
• Additional dilution risk with the issuance of share purchase warrants that may convert to common shares.

Vancouver, British Columbia--(Newsfile Corp. - June 3, 2024) - Freeport Resources Inc. (TSXV: FRI) (OTCQB: FEERF) (FSE: 4XH) ("Freeport Resources" or the "Company") is pleased to announce that it has closed a fourth tranche of its non-brokered private placement offering (the "Offering") for gross proceeds of $1,508,850. In connection with completion of the fourth tranche of the Offering, the Company has issued 30,177,000 units (each, a "Unit") at a price of $0.05 per Unit. Each Unit consists of one common share, and one-half-of-one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share of the Company at a price of $0.25 until May 31, 2026.

In connection with completion of fourth tranche of the Offering, the Company paid finders' fees of $600 and issued 12,000 share purchase warrants to certain arms-length parties who assisted in introducing subscribers to the Offering.

All securities issued under the fourth tranche of the Offering are subject to restrictions on resale until October 1, 2024 in accordance with applicable securities laws.

The Company has received a further extension of the deadline for completion of the Offering from the TSX Venture Exchange, and anticipates completing a final tranche of the Offering before June 14, 2024.

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/211335

FAQ

What is the total amount raised by Freeport Resources in the fourth tranche of the private placement?

Freeport Resources raised $1,508,850 in the fourth tranche of its private placement.

How many units did Freeport Resources issue in the fourth tranche?

Freeport Resources issued 30,177,000 units in the fourth tranche.

At what price were the units issued by Freeport Resources in the fourth tranche?

The units were issued at a price of $0.05 per unit.

What does each unit consist of in Freeport Resources' private placement?

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

What is the exercise price and expiry date of the warrants issued by Freeport Resources in the fourth tranche?

Each full warrant allows the purchase of an additional common share at $0.25 until May 31, 2026.

What are the resale restrictions on securities issued in Freeport Resources' fourth tranche?

All securities issued are subject to resale restrictions until October 1, 2024.

When does Freeport Resources anticipate completing the final tranche of the private placement?

Freeport Resources anticipates completing the final tranche of the private placement by June 14, 2024.