Freeport Resources talks with PNG's Kumul on Yandera

Executive Summary

• Freeport Resources Inc. has entered into a non-binding Memorandum of Understanding (MoU) with Kumul Minerals Holdings Ltd., Papua New Guinea's state-owned mining investment company, to collaborate on the advancement and strategic development of the Yandera copper project.
• The company has also commenced discussions with several potential strategic partners, including the signing of NDAs and non-binding MoUs, to advance the Yandera project to a definitive feasibility study.
• CEO Gord Friesen cited record copper and gold prices and strong inbound interest as drivers for these strategic discussions, noting that Yandera is one of the world's largest undeveloped copper projects with over $200 million USD expended since 2005.

Key Details

• MoU with Kumul Minerals Holdings Ltd.:
  • Purpose: To co-operate on the advancement and strategic development of the Yandera copper project in Papua New Guinea.
  • Scope: Framework for collaboration, information sharing, coordinated engagement with government stakeholders, and review of strategic options for long-term development.
  • Terms: Non-binding; does not create an obligation to complete a transaction or enter a definitive agreement. Initial term of 90 days.
  • Ownership: Freeport Resources retains full ownership and control of the Yandera project.
• Strategic Partner Discussions:
  • Freeport has initiated outreach to potential strategic partners to advance Yandera to a definitive feasibility study.
  • Actions taken include signing Non-Disclosure Agreements (NDAs) and, in some cases, non-binding, non-exclusive MoUs for cooperation in advancement and strategic planning.
• Project Background & Valuation:
  • Location: Madang province, Papua New Guinea.
  • Size: Approximately 245.5 square kilometres.
  • Status: One of the world's largest undeveloped copper-gold-molybdenum deposits; largest advanced, undeveloped copper project in Asia.
  • Investment: Over $200 million (U.S.) expended since 2005.
  • Technical Data: Based on a comprehensive 2017 pre-feasibility study (Independent technical report dated Nov. 27, 2017, prepared for Era Resources Inc.).
  • Market Context: CEO notes material increase in inbound interest driven by record-setting copper and gold prices and unprecedented demand.
• Key Personnel:
  • Nathan Chutas: Senior Vice-President Operations, Director, and Qualified Person (NI 43-101).
  • Gord Friesen: CEO.

Notable Quotes

• Nathan Chutas, Senior Vice-President Operations: "Kumul Minerals plays an important role in representing the state's commercial interests in Papua New Guinea's mining sector and brings valuable institutional insight. This MoU supports our efforts to advance Yandera while preserving full flexibility to pursue the most compelling outcomes for the project and its stakeholders."
• Gord Friesen, CEO: "Freeport Resources has experienced a material increase in inbound interest relating to its wholly owned Yandera copper project which the company believes is driven by evolving macro conditions including record setting copper and gold prices coupled with Yandera copper's strategic location in the Asia-Pacific region... With the copper price hitting new highs on unprecedented demand, timing for discussions is ideal and we are excited to have commenced discourse with potential strategic partners to advance the project through to a definitive feasibility study and development of the mine."