Freeport Resources Announces Closing of Second Tranche of Private Placement

Rhea-AI Summary

Freeport Resources (OTCQB: FEERF) closed the second tranche of a non‑brokered private placement on Dec 15, 2025, issuing 24,099,999 Units at $0.03 per Unit for gross proceeds of ~$723,000. Each Unit includes one common share and one‑half warrant; each whole warrant is exercisable at $0.06 for 12 months.

The Second Tranche is part of an Offering of up to 116,666,666 Units to raise up to $3,500,000. After this close the Company has raised $2,337,850 from 77,928,331 Units and expects a third and final tranche to close on or about Dec 19, 2025, subject to TSX Venture Exchange approval. Proceeds are intended for continued development of the Yandera Copper Project and general working capital. Securities are subject to a four‑month‑and‑one‑day resale restriction.

Positive

• Second tranche raised $723,000 on Dec 15, 2025
• Total proceeds raised to date: $2,337,850
• Offering size up to $3,500,000 (116,666,666 Units)
• Proceeds earmarked for Yandera Copper Project development and working capital

Negative

• Issued 24,099,999 Units in second tranche, increasing shareholder dilution
• Warrants convert at $0.06 within 12 months, adding potential near‑term dilution
• Final tranche closing remains subject to TSXV approval, creating execution uncertainty

News Market Reaction

+19.23%

1 alert

+19.23% News Effect

On the day this news was published, FEERF gained 19.23%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - December 15, 2025) - Freeport Resources Inc. (TSXV: FRI) (OTCQB: FEERF) (FSE: 4XH) ("Freeport Resources" or the "Company") is pleased to announce that, further to its news releases of October 15, 2025 and December 11, 2025, the Company has closed the second tranche of a non-brokered private placement through the issuance of 24,099,999 units (each, a "Unit") at a price of $0.03 per Unit for aggregate gross proceeds of approximately $723,000 (the "Second Tranche"). Each Unit consists of one common share of the Company, and one-half-of-one share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire an additional common share at a price of $0.06 for a period of twelve months following issuance.

The Second Tranche forms part of a larger offering by the Company (the "Offering") of up to 116,666,666 Units by way of non-brokered private placement at a price of $0.03 per Unit for gross proceeds of up to $3,500,000. The Company anticipates utilizing the proceeds from the Offering for the continued development of the Yandera Copper Project and for general working capital purposes. The Company does not anticipate that any portion of the proceeds from the Offering will be used to conduct investor relations activities. The Company does not expect to utilize the proceeds of the Offering to make payments to non-arms' length parties, other than in the ordinary course of their compensation for services provided to the Company.

Following the closing of the Second Tranche, the Company has raised gross proceeds of $2,337,850 through the issuance of 77,928,331 Units in connection with the Offering. The Company anticipates closing the third and final tranche of the Offering on or about December 19, 2025.

All securities issued in connection with the Offering will be subject to restrictions on resale for a period of four-months-and-one-day in accordance with applicable securities laws. Completion of any additional tranche of the Offering remains subject to approval of TSX Venture Exchange.

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
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. Examples of such statements include, but are not limited to, statements with respect to the development of the Yandera Copper Project; the anticipated timing for closing of a final tranche of the Offering; and the use of proceeds from the Offering. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; the Company's ability to secure additional financing on reasonable terms; the competitive conditions of the sector in which the Company operates; and laws and any amendments thereto applicable to the Company.

Many uncertainties and 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, including, without limitation, risks relating to the future business plans of the Company; risks related to the exploration and development of the Yandera Copper Project; risks that the Company will not be able to retain its key personnel; and risks that the Company will not be able to secure financing on reasonable terms or at all. 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/278016

FAQ

How many Units did Freeport Resources (FEERF) issue in the second tranche on Dec 15, 2025?

Freeport issued 24,099,999 Units in the second tranche at $0.03 per Unit.

What are the warrant terms attached to the Units in Freeport Resources' offering (FEERF)?

Each Unit includes one‑half‑of‑one warrant; each whole warrant is exercisable at $0.06 for 12 months after issuance.

How much has Freeport Resources (FEERF) raised so far from the Offering and what is the target?

To date the Company has raised $2,337,850 from 77,928,331 Units; the Offering target is up to $3,500,000.

What will Freeport Resources (FEERF) use the proceeds from the private placement for?

The Company expects to use proceeds for continued development of the Yandera Copper Project and for general working capital.

When does Freeport Resources (FEERF) expect to close the final tranche of the Offering?

The Company anticipates closing the third and final tranche on or about Dec 19, 2025, subject to TSXV approval.

Are there resale restrictions on securities issued in Freeport Resources' (FEERF) Offering?

Yes; all securities issued are subject to a resale restriction for four months and one day under applicable securities laws.