Freeport Arranges Financing for Spanish Mt. Gold, Hutton & Q Projects
| TSX Venture Exchange: FRI Shares Issued: 14,226,232 |
VANCOUVER, Nov. 18, 2011 /PRNewswire/ - Freeport Resources Inc. (TSXV: FRI) is pleased to announce it will undertake a non-brokered private placement to raise up to $1,060,000 from issuance of up to 5,000,000 non-flow-through and 300,000 flow-through shares, to be issued at a price of $0.20 per share. The first tranche of $300,000 has been received. Closing is anticipated to occur on or before December 15, 2011. Securities will be subject to a four month hold period and TSX-Venture Exchange approval. A 5% finder's fee on the non-flow-through shares is payable. Proceeds are for working capital and exploration of Freeport's 100%-owned properties in Canada:
| 1. | Spanish Mountain Gold: A sampling program is planned to outline a gold anomaly discovered previously. Three airborne geophysical anomalies prospective for gold called 'Resistivity lows' extend from a proposed gold mine adjacent to the west. New gold estimates from the proposed mine considerably increase the potential value of Freeport's claims, less than half a mile from the pit. | |
| 2. | Hutton Garnet Beaches: The Hutton is an advanced stage marine garnet placer project in eastern Canada. Because of high grades and uniform sizing, the beach sand performs like a hardrock garnet concentrate, favourably impacting project economics. A NI43-101 compliant Prefeasibility Study has been completed, and a 5000 tonne bulk sample was recently released from environmental assessment. Pilot plant implementation, production-scale sampling and additional environmental studies are planned. | |
| 3. | The Q (fluorspar-molybdenite): Planned work includes re-analyzing Adit 2 samples for fluorspar (CaF2) and ancillary minerals with potential economic interest. Results will be used to develop a new open pittable deposit model. The Q has historical non-NI43-101 compliant tonnage estimates of 24 million tonnes grading 11.5% CaF2 (Eaglet Mines). Strong world fluorspar markets recently resulted in the reopening of the Burin mine in NL, the only CaF2 producer in Canada and the USA. | |
| 4. | Red Rose Mine (tungsten gold): Red Rose produced tungsten with gold and copper by-products until the 1950's, closing due to lack of demand with ore remaining. Tungsten prices are at all-time highs, warranting property re-assessment. Interpretation of recent airborne geophysical data is planned with 2012 field follow-up. |
Zdenek Hora, M.Sc., P.Geo., is the qualified person who has reviewed this release. Freeport Resources, founded in 1981, is a mineral exploration company with a diversified portfolio of Canadian properties, from precious and base metals to industrial minerals. Please visit www.freeportresources.com, and view new Spanish Mountain and Hutton presentations at http://www.freeportresources.com/i/pdf/spanishmt2011.pdf and http://www.freeportresources.com/i/pdf/Hutton2011.pdf, or email [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The company seeks Safe Harbour.
Freeport Resources Inc.
Brenda Clark, MAIBC President & CEO
1-888-275-7335 (toll free)
(604) 275-7335 (tel.)
SOURCE Freeport Resources Inc.
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