Freeport Closes Third Tranche of Private Placement

Rhea-AI Summary

Freeport Resources has successfully closed the third tranche of its non-brokered private placement, raising gross proceeds of $934,250. The company issued 18,685,000 units at $0.05 per unit, with each unit comprising one common share and one-half-of-one common share purchase warrant. Each whole warrant allows the purchase of an additional share at $0.25 until May 17, 2026. Finders' fees of $16,000 were paid, and 320,000 share purchase warrants were issued to arms-length parties. All securities from this tranche are under resale restrictions until September 18, 2024. Freeport has extended the deadline for the offering with the TSX Venture Exchange and aims to complete the final tranche by May 31, 2024.

Positive

• Closed third tranche of private placement, raising $934,250.
• Issued 18,685,000 units at $0.05 per unit.
• Each unit consists of one common share and one-half-of-one warrant.
• Whole warrants allow purchase of additional shares at $0.25 until May 17, 2026.
• Paid $16,000 finders' fees and issued 320,000 share purchase warrants to arms-length parties.
• Extended deadline for offering completion to May 31, 2024.

Negative

• All securities issued are under resale restrictions until September 18, 2024.
• Finders' fees and additional warrants issued may dilute existing shareholder value.

Vancouver, British Columbia--(Newsfile Corp. - May 21, 2024) - Freeport Resources Inc. (TSXV: FRI) (OTCQB: FEERF) (FSE: 4XH) ("Freeport Resources" or the "Company") is pleased to announce that it has closed a third tranche of its non-brokered private placement offering (the "Offering") for gross proceeds of $934,250. In connection with completion of the third tranche of the Offering, the Company has issued 18,685,000 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 17, 2026.

In connection with completion of third tranche of the Offering, the Company paid finders' fees of $16,000 and issued 320,000 share purchase warrants to certain arms-length parties who assisted in introducing subscribers to the Offering.

All securities issued under the third tranche of the Offering are subject to restrictions on resale until September 18, 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 May 31, 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/209860

FAQ

What was the total amount raised in Freeport's third tranche of private placement?

Freeport raised gross proceeds of $934,250 in the third tranche.

What is the unit price for Freeport's private placement?

The unit price for the private placement is $0.05 per unit.

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

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

What is the exercise price for the warrants issued in the private placement?

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

When do the warrants issued in Freeport's private placement expire?

The warrants expire on May 17, 2026.

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

The securities are subject to resale restrictions until September 18, 2024.

What is the new deadline for completing Freeport's offering?

The new deadline for completing the offering is May 31, 2024.

How much finders' fees did Freeport pay in connection with the third tranche?

Freeport paid $16,000 in finders' fees.

How many share purchase warrants were issued to arms-length parties?

320,000 share purchase warrants were issued to arms-length parties.