- Freehill Mining (FHS) has ended the June quarter with more cash in the bank, following a placement, debt conversion and exercise of options
- Freehill start the quarter with $296,000 available and ended June with more than $900,000 in the bank
- The June quarter also saw the company deliver an increased magnetite resource for its Yerbas Buenas (YB) project in Chile
- Freehill’s subsidiary also signed a binding agreement to acquire the adjoining El Dorado tenements
- Shares in the company are trading steady at 5.7 cents per share
Freehill Mining (FHS) ended the June quarter with more than $900,000 in the bank, its “strongest financial position in its history”.
The positive result comes after the company successfully raised $700,000 via a placement to existing shareholder and sophisticated investor Gavin Ross.
An additional $665,000 was raised via a debt conversion, while $281,000 was raised from the exercise of options.
All in all, Freehill had $906,000 in cash at the end of June, a vast improvement from the start of the quarter when the company had $296,000.
Yerbas Buenas
The iron ore company also made strong progress on its flagship Yerbas Buenas (YB) magnetite project during the three months to June.
In particular, the company reported a fourfold increase to YB’s magnetite resource.
The total inferred and indicated mineral resource now stands at 67 million tonnes at 19.1 per cent iron and is based on drilling of two of the seven magnetite structures within the project.
Following the resource increase, Freehill’s CEO, Peter Hinner, said it has begun a feasibility study at the Chile project.
“A tremendous quarter for the company, which saw significant value added to our flagship Yerbas Buenas Project through the delivery of an impressive resource for the YB6 structure,” he said.
“We still believe YB has a very long way to go in terms of potential resource expansion, however, the fourfold increase achieved this quarter has given us the scale to confidently push forward with the feasibility study into the commercial start-up of our first stage mining operation,” he added.
El Dorado
Freehill topped off the June quarter by signing a binding agreement to acquire the adjoining El Dorado tenements.
The agreement was via Freehill’s subsidiary, San Patricio Mineria SpA, and the project is considered highly prospective for magnetite, copper and gold mineralisation.
Results from a rock chip sampling program at the site reported grades above 45 per cent iron, as well as 4.85 per cent copper and 22.8 grams per tonne of gold.
“We are excited by the pending acquisition of the adjoining El Dorado tenements. We are confident these tenements will provide a considerable boost to both our grade and scale in what is Chile’s premier iron ore-copper-gold address,” CEO Peter Hinner said.
Following today’s update, shares in the company are trading steady at 5.7 cents per share at close on July 30.