Freeport Resources Announces Increase in Private Placement

Rhea-AI Summary

Freeport Resources (OTCQB: FEERF) said it has increased its non-brokered private placement to up to 116,666,666 Units for gross proceeds of up to $3,500,000. Each Unit consists of one common share and one-half warrant; each whole warrant is exercisable at $0.06 for 12 months. The Company completed a first tranche of 53,828,332 Units for gross proceeds of $1,614,850.

The Company expects to use proceeds for continued development of the Yandera Copper Project and general working capital, does not anticipate using proceeds for investor relations, and may pay finders' fees. All securities will be subject to a four-month-and-one-day resale restriction and the Offering is subject to TSX Venture Exchange approval.

Positive

• Offering increased to $3.5M capacity
• First tranche raised $1,614,850 via 53,828,332 Units
• Proceeds designated for Yandera Copper Project development
• Warrants exercisable at $0.06 for 12 months

Negative

• Potential dilution of up to 116,666,666 new shares
• Completion depends on TSXV approval
• Issued securities subject to four-month-and-one-day resale hold

News Market Reaction

-7.83%

1 alert

-7.83% News Effect

On the day this news was published, FEERF declined 7.83%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Offering units (max): 116,666,666 units Gross proceeds (max): $3,500,000 First tranche units: 53,828,332 units +4 more

7 metrics

Offering units (max) 116,666,666 units Maximum size of increased non-brokered private placement

Gross proceeds (max) $3,500,000 Target gross proceeds from the Offering

First tranche units 53,828,332 units Units issued in first tranche of the Offering

First tranche proceeds $1,614,850 Gross proceeds already raised in first tranche

Warrant exercise price $0.06 Exercise price per common share under each whole warrant

Warrant term 12 months Exercise period for each whole warrant

Resale restriction 4 months and 1 day Hold period on securities issued in the Offering

Market Reality Check

Price: $0.0750 Vol: Volume 29,000 is 0.28x th...

low vol

$0.0750 Last Close

Volume Volume 29,000 is 0.28x the 20-day average of 104,185, indicating muted trading ahead of this financing news. low

Technical Price at 0.0217 is trading below the 200-day MA of 0.02 as flagged by the technical context.

Peers on Argus

Peers in Basic Materials show mixed moves: BGAVF up 22.15%, GURFF up 11.11%, BIT...

Peers in Basic Materials show mixed moves: BGAVF up 22.15%, GURFF up 11.11%, BITTF down 1.51%, while others are flat, suggesting this financing news is stock-specific rather than a sector-wide move.

Market Pulse Summary

The stock moved -7.8% in the session following this news. A negative reaction despite the increased ...

Analysis

The stock moved -7.8% in the session following this news. A negative reaction despite the increased Offering size to up to 116,666,666 units and potential gross proceeds of $3,500,000 would fit typical concerns around equity dilution and warrant overhang. The first tranche already raised $1,614,850 through 53,828,332 units, adding to the share count. Future sentiment may hinge on visible progress at the Yandera Copper Project and how quickly the new capital translates into tangible milestones.

Key Terms

non-brokered private placement, common share purchase warrant

2 terms

non-brokered private placement financial

"elected to increase the size of its previously announced non-brokered private placement"

A non-brokered private placement is when a company raises money by selling securities (such as shares or bonds) directly to a small group of chosen investors without using a broker or dealer as a middleman. For investors it matters because it can provide faster, lower-cost access to new investment opportunities but may bring higher risk, less liquidity and potential dilution of existing holdings compared with public offerings.

common share purchase warrant financial

"one-half-of-one common share purchase warrant. Each whole warrant will entitle"

A common share purchase warrant is a tradable contract that gives its holder the right, but not the obligation, to buy a company’s common stock at a specified price within a set period. Think of it like a coupon for future shares: if the stock rises above the coupon price it can boost returns for the holder, but when used it increases the number of outstanding shares and can reduce each existing shareholder’s ownership and affect the company’s cash position.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia--(Newsfile Corp. - December 11, 2025) - Freeport Resources Inc. (TSXV: FRI) (OTCQB: FEERF) (FSE: 4XH) ("Freeport Resources" or the "Company") is pleased to announce that it has elected to increase the size of its previously announced non-brokered private placement (the "Offering") in response to additional market interest.

The Company now intends to offer up to 116,666,666 units (each, a "Unit") for gross proceeds of up to $3,500,000. Each Unit will continue to consist of one common share, and one-half-of-one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share of the Company at a price of $0.06 for a period of twelve months.

To date, the Company has completed the first tranche of the Offering through the issuance of 53,828,332 Units for gross proceeds of $1,614,850.

The Company anticipates utilizing the proceeds from the Offering for the continued development of the Yandera Copper Project and for general working capital purposes. At this time, 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.

In connection with closing of the Offering, the Company may pay finders' fees to eligible third-parties who have assisted in introducing subscribers to the Offering. 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 the Offering remains subject to the approval of the 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 or gord@freeportresources.com
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. 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277700

FAQ

What change did Freeport Resources (FEERF) announce on December 11, 2025?

The company increased its non-brokered private placement to up to 116,666,666 Units for gross proceeds up to $3.5M.

How many Units and proceeds were closed in the first tranche for FEERF?

FEERF completed a first tranche issuance of 53,828,332 Units for gross proceeds of $1,614,850.

What does each Unit in FEERF's offering include and what are the warrant terms?

Each Unit includes one common share plus one-half warrant; each whole warrant is exercisable at $0.06 for 12 months.

How will FEERF use the proceeds from the private placement?

Proceeds are intended for continued development of the Yandera Copper Project and general working capital.

Will FEERF use offering proceeds for investor relations or related-party payments?

The company does not anticipate using proceeds for investor relations and does not expect payments to non-arms' length parties except ordinary compensation.

Are there resale restrictions or approvals required for FEERF's Offering?

Yes; securities will have a four-month-and-one-day resale restriction and completion is subject to TSX Venture Exchange approval.