Freehill Mining (ASX:FHS) has this week signed a non-binding memorandum of understanding with Austral Gold (ASX:AGD) to collaborate on “identifying and developing” copper and copper-gold opportunities in Chile.
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The agreement brings together Freehill’s growing portfolio of Chilean projects with Austral Gold’s technical, operational, and regulatory expertise in the country, as both companies look to accelerate project evaluation and development.
Under the MOU, the two ASX companies will jointly assess potential mining projects, share technical knowledge and explore opportunities to advance assets through exploration, development and potential production.
Freehill said the partnership aligns with its strategy of expanding beyond its existing aggregates business and building a portfolio of copper-focused assets in Chile.
The company recently secured options over the Blanco y Negro copper-gold project and the Joshua copper-gold project, both located in Chile’s Coquimbo region. Management believes the projects have the potential to complement its existing operations and support its transition towards copper production.
Austral Gold operates several mining and exploration assets across South America and brings experience in mine development, permitting and project execution, which Freehill believes will help accelerate the assessment of new opportunities.
The MOU is non-binding, with the companies intending to negotiate definitive agreements for individual projects following technical and commercial due diligence.
Freehill said the collaboration reflects increasing demand for copper exposure as global electrification and energy transition trends continue to support long-term demand for the metal. The company believes combining its local project pipeline with Austral Gold’s operating expertise could improve the speed and efficiency of future project development.
FHS last traded at 20cps.
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