Canadian junior exploration company Freeport Resources Inc. (FRI:TSX.V) announced in a news release that "it has acquired all of the outstanding share capital of Carpo Resources Inc. (Carpo)."
The firm advised that Carpo is a private company that controls Era Resources Inc., a Cayman Islands domiciled company, which in turn controls the exploration license for the Yandera Copper Project in Papua New Guinea.
Freeport Resources explained that under the terms of purchase agreement that Carpo shareholders, referred to as "vendors", received in aggregate 20,000,000 of Freeport Resources' common shares in exchange for their respective shares in Carpo. The company stated that based on the nature of the transaction, it did not constitute a fundamental acquisition pursuant to the rules of the TSX Venture Exchange nor did it create a new insider or a change of control as outlined in applicable securities laws.
The company noted that the Yandera Copper Project is one of the world's largest undeveloped copper deposits. The firm mentioned that it also previously acquired another mining operation in Papua New Guinea known as the Star Mountains Copper & Gold Project and pointed out the Yandera acquisition fits well with its strategy of seeking out, identifying, and acquiring undervalued projects globally.
The company noted that the area where the Yandera Copper Project sits has historically undergone substantial exploration drilling. Freeport pointed out that Broken Hill Proprietary Co. (BHP) previously drilled 33,000 meters (33,000m) in 102 diamond drill holes as part of a mining study that identified the Yandera porphyry system as host to one of the world's largest undeveloped porphyry copper systems containing both ancillary molybdenum and gold.
The firm listed that following BHP's operations, Era Resources spent more than US$100 million to drill an additional 144,000m across 471 holes.
The company advised that a Pre-Feasibility Study completed in 2017 estimated total resources of 959 Mt Cu eq. 0.37%. The report determined that the project included a Measured & Indicated (M&I) resource of 728 Mt grading 0.39% Cu eq. and 541 Mt of Probable Reserves averaging 0.39% Cu eq. Freeport noted that the M&I resources equate to 6.2 Blb Cu eq. with total resources of almost 8 Blb Cu eq.
The Yandera project site is located about 95km southwest of Madang in the foothills of the Bismarck Mountain Range. The terrain in the area is mountainous so materials and the site team are transported by helicopter from Madang Airport or the nearby village of Usino.
The property is situated within the New Guinea Orogenic Belt, home to some of the world's largest producing mines and deposits including Freeport-McMoRan Inc.'s (FCX:NYSE) giant Grasberg Copper-Gold mine, which the firm says "hosts the largest reserve of gold and second largest reserve of copper in the world."
Freeport Resources mentioned that the shift toward electrification and sustainable energy is now stimulating a surge in demand for copper, which is used widely as a conductor in wind, solar, and battery technologies. The company said that the worldwide supply of copper has not kept up with the rising demand, so it views the addition of Yandera to be a positive step in increasing its ability to capitalize on the potential market imbalance in years to come.
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