VANCOUVER, BC, June 28, 2021 /CNW/ - Freeport Resources Inc.
(TSXV: FRI) (FSE: 4XH) (OTCQB: FEERF) ("Freeport", or the "Company") is
pleased to announce that it has signed a definitive share purchase
agreement (the "Purchase Agreement"), dated effective
June 25, 2021, with Carpo Resources
Inc. ("Carpo"), and each of the shareholders of Carpo
(collectively, the "Vendors"), pursuant to which the Company
proposes to acquire all of the outstanding share capital of Carpo
from the Vendors (the "Transaction").
Carpo is a privately-held company which controls Era Resources
Inc., a corporation established under the laws of Cayman Islands and which itself controls an
exploration license located in Papua New
Guinea and which is commonly known as the "Yandera Copper
Project".
The Company is at arms-length from each of Carpo, and the
Vendors. In consideration for all of the outstanding share capital
of Carpo, the Company has agreed to issue 20,000,000 common shares.
In connection with completion of the Transaction, the Company does
not expect to assume any material liabilities, nor does it expect
to devote the majority of its working capital or resources to the
development of Carpo or the Yandera Copper Project. As a result,
the Transaction does not constitute a fundamental acquisition for
the Company, within the policies of the TSX Venture Exchange. The
Transaction will not result in the creation of a new insider, or a
change of control, of the Company, within the meaning of applicable
securities laws.
The Yandera copper project is an igneous, intrusive-hosted,
structurally controlled copper porphyry system with ancillary
molybdenum and gold. It is located 95 kilometres southwest of
Madang in Papua New Guinea and is
situated in the highly prospective New
Guinea orogenic belt. A pre-feasibility study, completed by
the Worley Parsons Group in November
2017, indicated Measured & Indicated Resources of 727
million tonnes grading 0.39% copper equivalent with Inferred
Resources of 231 million tonnes grading 0.32% copper equivalent.
The study identified 541 million tonnes of Probable Reserves
grading 0.39% copper equivalent.
The Company is not treating these historical estimates as
current and has not completed sufficient work to classify these
historical estimates as current mineral resources. While the
Company is not treating these historical estimates as current, it
does believe the work conducted by Worley Parsons Group is reliable
and may be of assistance to readers.
Completion of the Transaction remains subject to the approval of
the TSX Venture Exchange, and cannot be completed until such
approval has been received. No finder's fees or commissions are
payable in connection with the Transaction.
Dr. Nathan Chutas, Ph.D., CPG,
Senior Vice-President of Operations for the Company, is a qualified
person for the purposes of National Instrument 43-101. Dr. Chutas
has reviewed and approved the technical content in this news
release.
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
(236) 334-1660 or gord@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.
These forward-looking statements or information may relate to the
intended completion of the Transaction, the Yandera Copper Project,
and other factors 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.
SOURCE Freeport Resources Inc.